Rumor has it that Intel could shell out up to
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Rumor has it that Intel could shell out up to $6 billion for Israeli contract manufacturer Tower Semiconductor

Patrick Gelsinger repeatedly made it clear during his year as Intel’s CEO that the company was interested in expanding the contract business, but officially the corresponding activity was reduced mainly to the allocation of funds for the establishment of new companies. Now rumors about Intel’s intention to take over the Israeli contract manufacturer Tower Semiconductor are assumed.

Image Credit: Tower Semiconductor

Image Credit: Tower Semiconductor

This much lesser-known competitor to TSMC and GlobalFoundries specializes in contract manufacturing of power electronics, image sensors, and MEMS solutions. The company carries out its manufacturing activities through the production of analogue electronics at companies in Israel, the United States and Japan – in the latter case through a partnership with Panasonic. Compared to its competitors, Tower Semiconductor cannot boast of significant sales, last year revenues did not exceed $ 1.3 billion.

For the first time, Intel announced its intention to acquire Tower Semiconductor assets for more than $5 billion. The Wall Street Journalafter that the message was fetched Reuters and Bloomberg. On the eve of the capitalization of the Israeli contract manufacturer, it did not exceed $ 3.6 billion, but against the background of rumors about the upcoming takeover, the company’s share price rose by 58%. Sources claimed that the deal between Intel and Tower would be announced this week, at the time of preparing the material for publication, company officials did not comment on this information.

Previously, Intel planned to carry out activities to manufacture chips for third-party customers, devoting part of its own production lines to this need. In Ireland, for example, the production of 16nm products is already mastered for some customers among automotive component manufacturers. At its new Ohio plants, by mid-decade Intel hoped to be prototyping products for defense customers using the 18A process, which for its time was a step forward from the standards of the entire lithography industry. Apparently, Tower Semiconductor’s technological capabilities were of interest to Intel as part of a potential deal to manufacture analog components.

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About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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