The chip giant, Intel, reached a definitive agreement on Tuesday to acquire the Israeli company Tower Semiconductor. A very important and strategic acquisition for the American firm.
Not really satisfied with its current performance in chip manufacturing, Intel announced at the beginning of the year that it wanted to invest at least $20 billion in new capacities, with the construction of factories in Ohio. The company, which wants to catch up in manufacturing and become an essential foundry to meet the increase in demand in the industry, confirmed on February 15 that it had reached a definitive agreement around the takeover of Tower Semiconductor.
A company present in several regions of the world
The operation concerns an amount of 5.4 billion dollars, or 53 dollars per share, a premium very much higher than the valuation of this Israeli company, estimated at 3.6 billion dollars. It will allow Intel to expand its own manufacturing capacity and for other companies.
Tower Semiconductor, an Israeli company located in Migdal HaEmek and almost 30 years old, has undeniable qualities that could not fail to seduce the leaders of Intel. The company, which manufactures chips for companies that cannot manufacture them themselves, has several sites around the world: in Israel, Japan, Italy and the United States, with facilities in California and Texas.
” Tower’s specialty technology portfolio, geographic reach, deep customer relationships, and service-focused operations will help evolve Intel’s foundry services and advance our goal of becoming a leading provider of foundry capabilities in worldwide “Reacted the president and CEO of Intel, Pat Gelsinger, after the conclusion of this agreement.
A strategic acquisition, in a context of chip shortages
Less than a year ago, in March 2021, Intel unveiled its IDM 2.0 strategy (for Integrated device manufacturing 2.0). Its philosophy is to open both its factories and its solutions to external companies, to act as a sovereign Western player, in a period when the demand for semiconductors has surely never been greater.
And Tower Semiconductor can only help Intel in this regard. The company today manufactures semiconductors and circuits used in various sectors: automotive, consumer electronics, medical and industrial equipment, but also aerospace and defense. In its factories, they manufacture 150, 200 and 300 mm wafers, all of which have seen strong demand in 2021. The company has the capacity to produce a minimum of 2 million wafers (the semi- driver) per year.
This takeover allows Intel in any case to forget the abortive acquisition of GlobalFoundries Inc., whose owner had preferred, last summer, to favor an IPO. Today, this Nasdaq-listed company is worth $29 billion.
On the same subject :
2021, the year of semiconductors: the sector has grown by more than 25% despite shortages
Source: Intel
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