Intel to Acquire Tower for $5.4 Billion
15 February, 2022
“Tower’s portfolio, geographic reach and deep customer relationships will scale Intel’s foundry services and advance our goal of becoming a major provider of foundry capacity,” said Pat Gelsinger, Intel CEO
Intel and Tower Semiconductor (based in Migdal Haemek, Israel), announced a definitive agreement under which Intel will acquire Tower for $53 per share in cash, representing a total enterprise value of approximately $5.4 billion. The acquisition supports Intel’s IDM 2.0 strategy to build a foundry services business. “Tower’s specialty technology portfolio, geographic reach and deep customer relationships 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.
As a key part of its IDM 2.0 strategy, Intel established Intel Foundry Services (IFS) in March 2021 to become a major provider of U.S.- and Europe-based foundry capacity to serve customers globally. IFS currently offers leading-edge process and packaging technology, and a broad intellectual property (IP) portfolio. The transaction is expected to close in approximately 12 months. It has been unanimously approved by Intel’s and Tower’s boards of directors and is subject to regulatory approvals, including the approval of Tower’s stockholders.
Tower Semiconductor provides a broad range of customizable process platforms such as SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, integrated power management (BCD and 700V), and MEMS. It owns two manufacturing facilities in Israel (150mm and 200mm), two in the U.S. (200mm), three facilities in Japan (two 200mm and one 300mm) which it owns through its 51% holdings in TPSCo and is sharing a 300mm manufacturing facility being established in Italy with ST.
“With the addition of Tower, Intel is strongly positioned to bring more value to customers across the nearly $100 billion addressable foundry market.”