Intel is acquiring Tower Semiconductor for $5.4 billion

Intel could soon announce a nearly $6 billion acquisition that would give its fledgling foundry business a boost, according to The Wall Street Journal. The chip giant is reportedly close to clinching a deal to purchase Israeli chip company Tower Semiconductor, and it could be announced sometime this week unless the talks suddenly fall apart. 

Tower, which has a market value of around $3.6 billion, produces various types of chips for clients across industries, including automakers and medical and industrial equipment manufacturers. Its website shows that it has seven fabrication facilities located in Israel, Italy, the US and Japan making 6-inch, 8-inch and 12-inch chips. Tom’s Hardware says the manufacturing processes it uses aren’t cutting edge, but the chips it makes don’t need the latest technologies anyway. Tower only needs to reliably and regularly generate large volumes of chips. 

Before Tower, Intel was reported to be in talks to purchase the much larger chip manufacturer and AMD spinoff GlobalFoundries for around $30 billion. It didn’t push through, however, and GlobalFoundries chose to pursue an initial public offering instead. 

Intel launched its foundry services back in 2021 when it committed $20 billion to build two Arizona factories and explained …read more