[The Exiled]

Intel buys Tower Semiconductor to expand fab business

Intel has confirmed its plans to spend $5.4bn to acquire Israeli chip firm Tower Semiconductor as part of its scheme to expand and diversify its chip manufacturing business. The US chipmaker announced it has entered into a definitive agreement to acquire Tower Semiconductor, which specialises in manufacturing high-value analogue semiconductor components for more than 300 customers worldwide. The firm serves markets such as automotive, medical, industrial, consumer, and aerospace and defence. The transaction is expected to close in approximately a year. It has been unanimously approved by the boards of directors of both Intel and Tower, the two firms stated. Intel said the deal is a "highly complementary transaction" that brings together its own expertise in scale manufacturing with Tower Semiconductor's specialty technologies. Under the terms of the deal, Intel will acquire Tower for $53 per share in cash, which values the company at approximately $5.4bn. Intel also said that the acquisition will speed up the company's path to becoming a major provider of foundry services and capacity globally, adding that Tower Semiconductor would allow it to offer one of the industry's broadest portfolios of differentiated technology. The chip giant hinted the move would allow Intel to address the booming demand for semiconductors that has been seen as economies start to recover from the pandemic.

Izvor: The Register