Intel 추진 to acquire Israeli foundry Tower Semiconductor for 7.2 trillion won

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] U.S. semiconductor company Intel is reportedly in talks to acquire Israeli foundry (semiconductor contract manufacturing) company Tower Semiconductor for $6 billion (approximately 7.2 trillion KRW), according to the Wall Street Journal (WSJ) on the 14th (local time).

WSJ, citing anonymous sources, reported that if negotiations do not break down, the details of the deal could be disclosed within this week. Tower Semiconductor currently has a market value of about $3.6 billion, but WSJ expects a substantial premium to be added. Following the acquisition report, Tower Semiconductor’s stock, listed on the U.S. Nasdaq, rose nearly 50% in after-hours trading that day.

Tower Semiconductor is a foundry company focused on high-value analog semiconductors, headquartered in northern Israel, with manufacturing facilities in Israel, California and Texas in the U.S., and Japan. WSJ explained that Intel’s acquisition deal with Tower Semiconductor is similar to its attempt to acquire GlobalFoundries last year. This is interpreted as Intel, which resumed its foundry business last year, aiming to expand by acquiring a company with manufacturing facilities. GlobalFoundries decided to go public (IPO), causing Intel’s acquisition attempt to fail.

Since the arrival of CEO Pat Gelsinger last year, Intel has been focusing on expanding its foundry business. After announcing investment plans in Arizona and New Mexico, Intel announced last month a $20 billion investment in manufacturing facilities in Ohio. There is also a possibility of building factories in Europe.

Meanwhile, CEO Gelsinger is scheduled to reveal Intel’s 10-year outlook for the semiconductor industry, as well as future business and investment plans related to software, artificial intelligence (AI), and edge strategies, during the ‘Intel Investor Day’ held online on the 17th.

This content was produced with the assistance of AI translation services.