Intel has announced that it will be acquiring Tower Semiconductor for approximately USD 5.4 billion. The acquisition significantly advances Intel’s integrated device manufacturing (IDM) 2.0 strategy to further expand its manufacturing capacity, global footprint, and technology portfolio.
“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.”
Pat Gelsinger, Intel CEO
Intel established Intel Foundry Services (IFS) as a key part of its IDM 2.0 strategy in March 2021. This is to help meet the growing global demand for semiconductor manufacturing capacity.
Tower’s expertise in specialty technologies like radio frequency (RF), power, silicon-germanium (SiGe), and industrial sensors, to name a few will provide broad coverage to both Intel and Tower’s customers globally. The latter serves mobile, automotive, and power.
Additionally, it operates a geographically complementary foundry presence in both the US and Asia. It also brings a foundry-first customer approach with an industry-leading customer support portal, IP storefront, and design services and capabilities.
“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.”
Russell Ellwanger, Tower CEO
The transaction is expected to close in approximately 12 months. It has been unanimously approved by the board of directors of both Intel and Tower and is subject to certain regulatory approvals.
IFS and Tower Semiconductor will run independently until deal closure. However, the intent is for the two organizations to become a fully integrated foundry business.