Intel has announced Plans to Acquire Tower Semiconductor for USD 5.4 Billion | Financial Buzz

Intel has announced Plans to Acquire Tower Semiconductor for USD 5.4 Billion

Intel Corporation (NASDAQ: INTC) has reported a definitive agreement with Tower Semiconductor (NASDAQ: TSEM) where Intel will acquire Tower for USD 53 per share in cash or a total value of USD 5.4 Billion.  The acquisition further expands Intel’s manufacturing capacity, technology portfolio and global footprint to address the current industry demand.  “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.”

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Intel has established the Intel Foundry Services back in March 2021 to meet the global demand for semiconductor manufacturing capacity and to become a major provider of United States and Europe based foundry capacity to serve customers on a global scale.  “With a rich history, Tower has built an incredible range of specialty analog foundry solutions based upon deep customer partnerships, with worldwide manufacturing capabilities. I could not be prouder of the company and of our talented and dedicated employees,” said Russell Ellwanger, Tower CEO. “Together with Intel, we will drive new and meaningful growth opportunities and offer even greater value to our customers through a full suite of technology solutions and nodes and a greatly expanded global manufacturing footprint. We look forward to being an integral part of Intel’s foundry offering.”

Dr. Randhir Thakur, president of Intel Foundry Services, said: “We are thrilled to welcome the Tower team to Intel. Their decades of foundry experience, deep customer relationships and technology offerings will accelerate the growth of Intel Foundry Services. We are building Intel Foundry Services to be a customer-first technology innovator with the broadest range of IP, services and capacity. Tower and IFS together will provide a broad portfolio of foundry solutions at global scale to enable our customers’ ambitions.”

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