Intel plans to acquire Israeli chip manufacturer Tower Semiconductor for $5.4 billion.
The acquisition is part of Intel’s plan to boost its foundry business.
Intel’s CEO, Pat Gelsinger, said following this acquisition, Intel will scale its foundry services with the help of Tower’s specialty technology portfolio, deep customer relationships, geography reach, and services first operations.
He further said that the acquisition would also help Intel progress towards becoming a major provider of foundry capacity across the globe.
Tower has its foundries in the US and Asia and offers over 2 million wafer starts per year of capacity.
Israeli chip manufacturer concentrates on conventional process technology, with the products ranging from 0.8- micron transistor to 45 nanometers. The range is similar to rival GlobalFoundries(Intel considered acquiring it in 2021).
Tower CEO Russell Ellwanger said Tower has an extensive track record of offering specialty analog foundry solutions with globally recognized manufacturing capabilities.
Meanwhile, the transaction is anticipated to close in around 12 months while unanimously approved by Intel’s and Tower’s board of directors. Additionally, the closure is also subjected to the usual regulatory approvals and customary closing, including the consent of Tower’s stockholders.
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