By Mike Sunnucks | Rose Law Group Reporter
Intel Corp. — which has a large and expanding footprint in Chandler — is acquiring Israel-based Tower Semiconductor in a $5.4 billion cash deal.
Intel (Nasdaq: INTC) and Tower (Nasdaq: TSEM) announced the deal Tuesday, Feb. 15.
Santa Clara, California-based Intel will acquire Tower for $53 per share. The Israeli company fabricates analog semiconductors.
“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,” said Pat Gelsinger, Intel CEO. “This deal will enable Intel to offer a compelling breadth of leading-edge nodes and differentiated specialty technologies on mature nodes – unlocking new opportunities for existing and future customers in an era of unprecedented demand for semiconductors.”
There have been global supply chain challenges and some shortages for computer chips during the COVID-19 pandemic.
Tower has expertise in “specialty technologies, such as radio frequency (RF), power, silicon-germanium (SiGe) and industrial sensors, extensive IP and electronic design automation (EDA) partnerships, and established foundry footprint will provide broad coverage to both Intel and Tower’s customers globally,” according to Feb. 15 release from the two companies.
Intel has been expanding its footprint in Arizona and New Mexico and recently announced new production investment in Ohio.
