Intel now also wants to acquire Tower Semiconductor

Intel now also wants to acquire Tower Semiconductor

San Francisco, Feb. 17, 2022

Intel has announced it will buy Israeli chipmaker Tower Semiconductor for $5.4 billion to expand its capabilities in its new foundry business. The move is part of the U.S. chipmaker’s IDM 2.0 strategy, which focuses on making processors for other companies to compete with the likes of TSMC and Samsung.

Tower, formerly TowerJazz, has manufacturing facilities in Israel, Texas and Japan, where it produces 2 million wafers annually for other chipmakers. The company specializes in chips for wireless communications, image processing and power management.

Intel plans to integrate Tower into its new Foundry Service division, which the company formed in 2021 to make processors for third-party companies and governments.

Intel agreed to pay $53 per share for Tower, a 60% premium over Monday’s closing price of $33.13 on the Nasdaq. In January, Intel announced it would invest more than $20 billion in an Ohio chip plant as global demand for more semiconductor manufacturing increases.

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