Currently listed on Nasdaq and the Tel Aviv Stock Exchange, Tower Semiconductor is said to specialise in customized analog solutions for manufacturing differentiated semiconductors at its seven fabs located in Israel, the US, and Japan
Tower Semiconductor is an Israel-based chip company. (Credit: Tower Semiconductor/Wikipedia.org)
Intel is reportedly closing in on a deal to acquire Tower Semiconductor, an Israeli company that manufactures integrated circuits, for a price of around $6bn.
The deal is expected to help Intel bolster its plan to develop more chips for other companies, reported The Wall Street Journal, citing people having knowledge about the development.
Last March, Intel launched the Intel Foundry Services business to provide foundry capacity in the US and Europe for catering to customers around the world.
Intel is likely to announce the deal with Tower Semiconductor as early as this week, subject to the talks not falling apart, said the undisclosed sources.
Tower Semiconductor is said to specialise in customized analog solutions for manufacturing differentiated semiconductors. It is currently listed on Nasdaq as well as the Tel Aviv Stock Exchange.
The company offers process technologies such as radio frequency (RF), integrated power management, high performance analog (HPA), complementary metal oxide semiconductor (CMOS) image sensors (CIS), non-imaging sensors, mixed-signal CMOS, and micro-electro-mechanical systems (MEMS) capabilities among others.
Tower Semiconductor has seven chip manufacturing facilities located in three geographic regions. These include 150mm and 200mm fabs in Israel, two 200mm fabs in the US, and three fabs in Japan through its partnership with Panasonic Semiconductor Solutions.
Last July, Intel was reportedly in talks with US-based semiconductor manufacturer GlobalFoundries to acquire the latter for around $30bn. However, a deal could not be executed and instead, GlobalFoundries opted to seek an initial public offering.
In January this year, Intel announced an initial investment of more than $20bn to build two new semiconductor fabs in Ohio, US as part of its manufacturing expansion plans. In September 2021, the company started construction on two semiconductor factories in Arizona with an investment of around $20bn.