While competitor AMD recently completed the acquisition of FPGA maker Xilinx, Intel is also on a buying spree, acquiring Israeli company Tower Semiconductor, considered a leading Foundry is known for analog semiconductor solutions.
According to the announcement on the official website, the acquisition is expected to significantly advance Intel’s “IDM 2.0” strategy as it further expands its manufacturing capabilities, global footprint, and technology portfolio “to meet the industry’s unprecedented demand.”
“Tower’s distinctive technology portfolio, geographic reach, deep customer relationships and service-centric operations will help scale Intel’s foundry services and advance our goal of becoming a major provider of foundry capabilities worldwide,” said Intel CEO Pat Gelsinger.
This is what Tower Semiconductor offers
Intel founded Intel Foundry Services (IFS) as part of the “IDM 2.0” strategy in March 2021. Tower Semiconductor will now contribute its expertise in specialty technologies such as radio frequency (RF), energy, silicon germanium (SiGe), and industrial sensors, as well as its extensive IP and EDA (Electronic Design Automation) partnerships and established foundry presence.
Tower has a complementary foundry geographical footprint with facilities in the US and Asia serving both fabless companies and IDMs and offers more than 2 million wafers per year capacity. Tower also offers a foundry-first customer approach with a customer support portal and IP storefront, as well as design services and capabilities.
“Together with Intel, we will drive new and meaningful growth opportunities and deliver even greater value to our customers through a comprehensive offering of technology solutions and hubs, as well as a greatly expanded global manufacturing footprint. We look forward to being an integral part of Intel’s foundry offering”, said Russell Ellwanger, CEO of Tower.
Acquisition has yet to be completed
The transaction is going to close in about 12 months. It was unanimously approved by the Intel and Tower boards of directors and is subject to certain regulatory approvals and customary closing conditions, including Tower shareholder approval. IFS and Tower Semiconductor will be managed independently until the closing of the transaction. Upon completion of the transaction, Intel intends to combine both companies into a fully integrated foundry business.
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