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Intel to buy custom chipmaker Tower Semiconductor for $5.4 billion

AP
Updated: February 15th, 2022, 21:04 IST
in Business, Sci-Tech
0
intel.(photo:Pixabay.com)/ IANS

intel.(photo:Pixabay.com)/ IANS

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Santa Clara: Intel said it is buying Israeli company Tower Semiconductor for $5.4 billion in a deal that could give the California chipmaking giant an edge in the business of making custom-designed chips.

Intel CEO Pat Gelsinger said Tuesday that acquiring Tower will help expand Intel’s newly formed “foundry” business that makes microprocessors for other firms.

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Tower, based in Tel Aviv, specialises in making analog chips used in cars, mobile devices and in industrial, medical and military sectors.

The companies said it could take a year for the deal to close. It’s been approved by each company’s board of directors but will face scrutiny from government regulators.

Amid growing demand for semiconductors and an  ongoing global chip shortage, Santa Clara, California-based Intel said the deal also will help expand its manufacturing capacity and global footprint.

Many chipmakers have been seeking to diversify their supply chains to prevent the disruptions caused by pandemic lockdowns and other unexpected events.

AP

Tags: IntelTower Semiconductor
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