Intel buys Tower Semiconductor for $5.4 billion

Busy days for semiconductor and chip manufacturing companies, and also for the big technology companies dedicated to hardware. In recent months there are already several that have changed hands and others that are about to do so. The latest has been Xilinx, which has closed its sale to AMD yesterday after having the approval of the regulatory authorities. meanwhile, SK Hynix has kept the NAND and SSD divisions of Intelwho after negotiating a failed deal to stay with GlobalFoundries, has just confirmed the purchase of Tower Semiconductor for 5,400 million dollars.

This amount is well above the value of Tower Semiconductor shares at the close of trading on Monday. Intel will pay its shareholders $53 in cash for each Tower share they own. The company, which is now 29 years old, is based in the Israeli town of Migdal Haemek and is dedicated to the development of chips for clients that do not have their own factories.

For this, it has several factories in Israel, Italy and the United States. in total it has a factory for the development of 150-millimeter wafers, five for the development of 200-millimeter wafers and one more dedicated to 300-millimeter wafers. It is the sixth manufacturer of components for third parties in importance.

This company focuses on older process technology, manufacturing components ranging from 0.8-micron to 45-nanometer transistors, and other older-than-3-nanometer circuitry used in the latest generation of processors. . Its main competitor is Taiwan Semiconductor Manufacturing Company (TSMC), whose plants Intel is already using to manufacture some of its components. It also competes with Vanguard, International Semiconductor and United Microelectronics Corp.

Other specialties include radio frequency technology, industrial and silicon-germanium sensors, electronic design automation (EDA) agreements. Tower serves high-growth markets such as mobile devices, as well as automotive and energy.

The purchase of Tower Semiconductor is part of Intel’s strategy of invest in component manufacturing to leave various complications behind to do it. Also in its efforts to become a company dedicated to the manufacture of chips for other companies.

Pat Gelsinger, CEO of Intelhas highlighted that «Tower’s specialized technology portfolio, geographic reach, deep customer relationships, and service-focused operation will help scale Intel’s manufacturing services, as well as advance our goal of becoming a great provider manufacturing capacity globally. This agreement will allow Intel to offer a wide variety of cutting-edge nodes, as well as differentiated specialty technologies in mature nodes, unlocking new opportunities for current and future customers in an era of unprecedented demand for semiconductors.«.

Russell Ellwanger, CEO of Towerhas highlighted for his part that «With a rich history, Tower has developed an incredible range of specialty analog manufacturing solutions based on strong customer partnerships and manufacturing capabilities around the world. Together with Intel, we will drive significant new growth opportunities and deliver even more value to our customers through a suite of technology solutions and nodes, as well as an enhanced global manufacturing footprint. We look forward to becoming an integral part of Intel’s manufacturing offering.«.

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