New York, Tuesday, 15 February 2022 -
Intel, the American chipmaker, announced on Tuesday that it will pay $5.4 billion for Israeli semiconductor startup Tower Semiconductor.
Tower Semiconductor will be acquired by Intel for $53 per share in cash, according to a release.
Following the announcement, Tower Semiconductor's stock rocketed 40 percent on the Tel Aviv Stock Exchange, while Intel's stock fell 0.1 percent on the Nasdaq in limited pre-market activities.
In a statement, Intel CEO Pat Gelsinger said, "Tower's speciality technology portfolio, geographic reach, deep customer relationships, and services-first operations will help scale Intel's foundry services and promote our aim of being a leading provider of foundry capacity globally."
"In an era of unprecedented demand for semiconductors, this purchase will enable Intel to offer a compelling breadth of leading-edge nodes and differentiated specialist technologies on mature nodes – unlocking new opportunities for present and prospective customers," he added.
According to Tower Semiconductor CEO Russell Ellwanger, the company has developed a variety of specialist analog foundry solutions based on long-term customer relationships and global manufacturing capabilities.
"Through a broad suite of technology solutions and nodes, as well as a considerably enlarged global manufacturing presence, we will drive new and meaningful growth prospects and give even more value to our clients," he said.
(Research and edit by: The Decision Maker)