HomeTechnologyIntel to amass contract chipmaker Tower Semiconductor for $5.4B

Intel to amass contract chipmaker Tower Semiconductor for $5.4B

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Intel has confirmed earlier rumors that it’s planning to amass “contract” chipmaker Tower Semiconductor in an all-cash deal price $5.4 billion.

Based in 1993, Tower Semiconductor producers analog chips for a whole lot of firms throughout automotive, medical, industrial, aerospace, and extra. The Migdal HaEmek, Israel-based firm makes chips designed by different firms, and competes in opposition to Taiwan’s TSMC, one of many world’s largest semiconductor companies.

The acquisition comes virtually a yr after Intel revealed plans to take a position $20 billion in two new factories in Arizona, whereas concurrently saying Intel Foundry Providers (IFS) — a devoted unit for manufacturing chips for exterior designers. In July, Intel CEO Pat Gelsinger revealed that the corporate was speaking to a minimum of 100 potential prospects for IFS.

Reviews additionally emerged final summer time that Intel was in talks to purchase TSMC rival GlobalFoundries for $30 billion, although the corporate elected to go public on the Nasdaq as an alternative.

Capability and attain

With Tower Semiconductor beneath its wing, Intel has given its burgeoning contract chipmaking aspirations a significant increase, each by way of manufacturing capability, international attain, and IP / know-how.

“Tower’s specialty know-how portfolio, geographic attain, deep buyer relationships and services-first operations will assist scale Intel’s foundry companies and advance our objective of turning into a significant supplier of foundry capability globally,” Gelsinger stated in a press launch. “This deal will allow Intel to supply a compelling breadth of modern nodes and differentiated specialty applied sciences on mature nodes – unlocking new alternatives for current and future prospects in an period of unprecedented demand for semiconductors.”

Ought to the transaction obtain shareholder and regulatory approval, Intel stated that it expects the deal to shut throughout the subsequent 12 months.

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