After failed acquisition, Intel signs foundry deal with Tower Semiconductors

Intel has announced a deal to provide foundry services and manufacturing capacity to Tower Semiconductor two weeks after cancelling its plan to acquire the company for $5.4 billion due to regulatory pushback.
Under the new deal, Tower will invest up to $300 million to acquire and own equipment and other assets that will be installed in Intel’s manufacturing facility in New Mexico, US operated by Intel Foundry Services.
Intel has agreed to manufacture Tower’s 65-nanometer power management BCD (bipolar-CMOS-DMOS) flows as part of the deal. Tower has its own manufacturing facilities located in Israel (150mm and 200mm), the U.S. (200mm), Japan (200mm and 300mm), and soon in Italy in partnership with STMicroelectronics.
Intel says that this deal will increase Tower’s capacity by over 600,000 photo layers per month, supporting advanced analog processing for 300mm and meeting forecasted customer demand.
“We launched Intel Foundry Services with a long-term view of delivering the world’s first open system foundry that brings together a secure, sustainable, and resilient supply chain with the best of Intel and our ecosystem. We’re thrilled that Tower sees the unique value we provide and chose us to open their 300mm U.S. capacity corridor,” Stuart Pann, Intel senior vice president and general manager of Intel Foundry Services, said.
Russell Ellwanger, the CEO of Tower Semiconductors said, “We are excited to continue working with Intel. As we look to the future, our primary focus is to expand our customer partnerships through high-scale manufacturing of leading-edge technology solutions. This collaboration with Intel allows us to fulfil our customers’ demand roadmaps, with a particular focus on advanced power management and radio frequency silicon on insulator (RF SOI) solutions, with full process flow qualification planned in 2024. We see this as a first step towards multiple unique synergistic solutions with Intel.”
Last month, Intel had to call off its plan to acquire Israel-based Tower Semiconductor for $5.4 billion due to delays in obtaining necessary regulatory approvals, particularly in China. As part of the agreement’s terms, Tower will receive a $353 million termination fee from Intel.

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