World’s leading microchip manufacturing company, Intel, announces its plan to acquire analog integrated circuits developing firm Tower Semiconductor in a whopping $5.4 billion acquisition deal.
According to a definitive agreement signed by the companies, Intel will buy Tower Semiconductor for $53 per share in cash.
This new development will considerably help Intel to accelerate its manufacturing capacity and increase its product portfolio to meet the market demand in the time of a global chip shortage.
Intel will use Tower Semiconductor’s expertise to further strengthen its newly established Foundry Service subsidiary, which aims to provide chip manufacturing facilities to third-party organizations.
Intel also announced a $20 billion investment in a microchip manufacturing facility in Ohio. The investment made by Intel would strengthen its motive of manufacturing essential electronics products within the United States.
CEO of Intel, Pat Gelsinger, said, “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.”
He further added that Intel would be able to offer a compelling range of cutting-edge nodes as well as specialized technologies on established nodes as an outcome of this deal. Additionally, the acquisition of Tower Semiconductors will open up new opportunities for current and potential customers in an era of unprecedented semiconductor demand.
Israel-based semiconductor company Tower Semiconductor was founded in 1993. The company specializes in multiple technologies, including radiofrequency (RF), power, silicon germanium (SiGe), electronic design automation, industrial sensors, and many more.
CEO of Tower Semiconductor, Russell Ellwanger, said, “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.”
He also mentioned that through a broad suite of technology solutions and nodes and a considerably enlarged global manufacturing base, they would drive new and vital growth prospects and give even more value to our customers in collaboration with Intel.