Intel and Tower Semiconductor recently announced a definitive agreement under which Intel will acquire Tower for $53 per share in cash, for a total of approximately $5.4 billion.
The acquisition of "a leading analog semiconductor manufacturer" is said to significantly advance Intel's IDM 2.0 strategy, allowing it to expand its manufacturing capacity, global footprint and technology portfolio to meet "unprecedented industry demand."
As part of IDM 2.0, introduced in March 2021, Intel formed Intel Foundry Services (IFS) to capitalize on the growing global demand for semiconductor manufacturing capacity and become a major contract manufacturer.
Tower's strengths include expertise in specialty technologies such as radio frequency (RF), power, silicon germanium (SiGe) products and industrial sensors; also the company's extensive partnerships in the field of intellectual property creation and design automation, as well as established contract manufacturing. Tower serves high-growth markets - mobile, automotive and energy. Tower has facilities in the US and Asia capable of producing more than 2 million plates per year, with potential for expansion in the US (Texas), Israel, Italy and Japan.
Intel plans to finance the acquisition with cash from its current balance sheet. The deal is expected to close in about 12 months. It has been unanimously approved by the boards of directors of Intel and Tower. It is now necessary to obtain regulatory approval and other usual conditions in such cases.
Intel is going to fully integrate Tower Semiconductor into IFS. She promises to share detailed information about integration plans after the completion of the transaction.
bbabo.Net