While rumors circulate about a possible acquisition of software developer Splunk by Cisco, news has surfaced about the acquisition of Tower Semiconductor by microchip maker Intel.
Tower Semiconducto was founded in 1993. Based in Migdal HaEmek in northern Israel, the company manufactures semiconductors and microcircuits used in industries ranging from automobiles and consumer products to medical and industrial equipment. The company has manufacturing facilities in Japan and the United States (California and Texas).
On the morning of February 15, there were rumors that Intel could acquire Tower Semiconductor for $6 billion. After that, the company's shares soared by almost 66%. Before the news, the capitalization of Tower Semiconductor was $3.8 billion. And on the official website, Intel confirmed the purchase of the Israeli company for $5.4 billion.
Both companies are excited about the new opportunities, as they said in the purchase announcement. Intel CEO Pat Gelsinger commented on the deal:
“Tower's specialized technology portfolio, geographic footprint, close customer relationships, and focus on service will help scale Intel's manufacturing services and advance our ultimate goal of becoming a premier semiconductor contract manufacturer. This agreement will enhance our ability to provide access to a wide range of advanced and mature technologies and provide our current and future customers with a greater choice of available services.”
Tower CEO Russell Elwanger said:
“With a rich history, Tower has built an incredible range of custom solutions based on close partnerships with customers and manufacturing facilities around the world. I am very proud of the company and our talented and dedicated employees. Together with Intel, we will be able to drive growth opportunities more and deliver more value to customers with a full suite of technology solutions and nodes, greatly expanding global manufacturing capacity. We look forward to being an integral part of Intel's manufacturing offering."
bbabo.Net