Intel to aqcuire Tower Semi for $5.4 billion
Tower will add expertise in specialty technologies such as RF, power, SiGe and industrial sensors
Intel will acquire Israeil chip maker Tower Semiconductor for $53 per share in cash, representing a total enterprise value of $5.4 billion.
“Tower’s specialty technology portfolio, geographic reach, deep customer relationships and services-first operations will help scale Intel’s foundry services and advance our goal of becoming a major provider of foundry capacity globally,” said Pat Gelsinger, Intel CEO.
“This deal will enable Intel to offer a compelling breadth of leading-edge nodes and differentiated specialty technologies on mature nodes – unlocking new opportunities for existing and future customers in an era of unprecedented demand for semiconductors.”
Intel established Intel Foundry Services (IFS) in March 2021 to help meet the growing global demand for semiconductor manufacturing capacity and to become a major provider of US - and Europe-based foundry capacity.
Tower’s expertise in specialty technologies, such as RF, power, SiGe and industrial sensors, extensive IP and electronic design automation (EDA) partnerships, and established foundry footprint will provide broad coverage to both Intel and Tower’s customers globally.
Tower serves high-growth markets such as mobile, automotive and power. Tower has foundries in the US and Asia serving fabless companies as well as IDMs. It offers more than 2 million wafer starts per year of capacity – including growth opportunities in Texas, Israel, Italy and Japan.
