Shortly after his first year as Intel CEO, Patrick Gelsinger traveled to Israel to meet with the staff of Tower Semiconductor, which is being acquired for $5.4 billion. She no longer cares about assets.
Gelsinger recently had to explain at an investor event that Tower Semiconductor’s assets are interesting because of the company’s experience with many customers, since Intel itself intends to set up a contract business. Patrick Gelsinger shared his further thoughts on this topic in an interview at the beginning of March limelist during his visit to Israel.
Gelsinger explained that in his 11 years outside of Intel, he has led about 80 acquisitions in the enterprise market, most of which have been successful. Intel has managed to acquire several Israeli companies – in addition to Tower Semiconductor, these include Habana Labs, Moovit, Cnveg, Screenovate and Mobileye. The latter, of course, will have to go public and structurally part with Intel, but this will not diminish the latter’s interest in using Mobileye developments.
Intel’s management negotiated the takeover of Tower directly at the end of last year, but only agreed on key positions in the spring. Intel has been present in Israel for 48 years, there is a company manufacturing processors and chipsets, as well as a research center where they are developed. The acquisition of Tower brings Intel’s workforce in Israel to 15,000 people, despite the fact that the company was already the country’s largest foreign employer. Gelsinger doesn’t rule out that Intel’s Israeli workforce will grow to 20,000 people, he’s just not ready to give a date for when that milestone will be reached. One thing is clear: the company will expand its presence in Israel, although buying industrial assets is no longer part of Intel’s plans, the CEO acknowledged. Now the company is more interested in buying local software developers.
Returning to the outlook, the tower companies based in Israel, Japan, Europe and the US are all maintained except for the California unit, which has an expiring lease. However, the company’s operations in Texas will remain unaffected. In Israel, Intel will combine the manufacturing capabilities of its own Kiryat Gat facility and the facility inherited from the Tower.
The Intel boss found that the company’s board of directors initially accepted him as CEO on the condition that there were no age restrictions for this position. In other words, when Gelsinger turns 65 in five years, no one is going to force him to retire. He also believes that after the company’s revival under his leadership, Intel’s capitalization will exceed NVIDIA’s.