Intel to Acquire Tower Semiconductor for $5.4 Billion

March 7, 2022 – Intel Corporation has announced its acquisition of Tower Semiconductor, a leading foundry for analog semiconductor solutions, for $53 per share in cash.  This acquisition represents a total enterprise value of approximately $5.4 billion. 

With an unprecedented global shortage across the chipmaking and semiconductor industry this acquisition signals a potential positive shift. Intel’s acquisition of Tower Semi will significantly advance Intel’s IDM 2.0 strategy by helping the company expand its manufacturing capacity to address the unprecedented industry demand. 

The complete transaction is expected to close in 12 months with Tower continuing to operate as an independent entity in the interim. Once the deal completes Intel Foundry Services (IFS) and Tower Semi will merge into one unified foundry business unit. 

Acquisition Impacts 

To help keep you informed, SiliconExpert has summarized some of the key takeaways from this acquisition and how it will have an impact on the global semiconductor market.   

• Creates a globally diverse end-to-end foundry to help meet growing semiconductor demand  
• Accelerates Intel’s path to becoming a major provider of foundry services 
• Unifies Intel’s leading-edge nodes and scale manufacturing with Tower’s specialty technologies 

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