The Strategist

Intel buys chip maker Tower Semiconductor

02/16/2022 - 08:14

U.S. Intel is buying Israeli semiconductor maker Tower Semiconductor for $5.4 billion, Intel said in a statement.

Jernej Furman
Jernej Furman
"Intel and Tower Semiconductor, a manufacturer of analog semiconductors, today announced a definitive agreement under which Intel will acquire Tower for $53 per share, bringing the total enterprise value to about $5.4 billion," the statement reads.

The deal was unanimously approved by the companies' boards of directors and is expected to be closed within 12 months.

Tower Semiconductor is a manufacturer of analog semiconductors and also provides technology and manufacturing platforms for integrated circuits used in the consumer, industrial, automotive and medical markets, among others. It is headquartered in Migdal HaEmek, Israel.

"Tower Semiconductor's technology portfolio, geographic reach, deep customer relationships and service-oriented operations will help Intel expand its semiconductor manufacturing and embody our company’s goal of becoming a major capacity holder in this area worldwide," Intel CEO Pat Gelsinger said.