Intel, Israel’s Tower Semiconductor enter into strategic partnership following failed merger

Intel and Tower Semiconductor have entered into a strategic partnership, following the termination of their proposed $5.4 billion merger due to regulatory challenges. Under this new agreement, Tower Semiconductor will invest $300 million in Intel’s manufacturing facility located in New Mexico. In return, Tower Semiconductor will acquire and own equipment and fixed assets to be deployed at this facility.

This partnership aims to bolster both companies’ positions in the semiconductor industry. Tower Semiconductor will gain access to a substantial production capacity of over 600,000 photo layers per month at the New Mexico facility. This expanded capacity will enable Tower Semiconductor to better meet the growing demand for next-generation 300mm chips, which are crucial for various applications, including advanced power management and radio frequency silicon on insulator (RF SOI) solutions.

Russell Ellwanger, CEO of Tower Semiconductor, sees this collaboration as an initial step toward multiple synergistic solutions with Intel. He noted that the collaboration would allow Tower Semiconductor to meet its customers’ demand roadmaps effectively, with full process flow qualification planned for 2024.

For Intel, this partnership enhances its foundry capabilities and competitive position in the semiconductor market. In 2021, Intel allocated $3.5 billion to its New Mexico facility and announced an additional $20 billion investment in a chip-making complex in Ohio in 2022. The company is making strategic moves to expand its foundry business, with a focus on advanced packaging solutions, to stay competitive with industry leader Taiwan Semiconductor Manufacturing Co. (TSMC).

During the second quarter of 2023, Intel’s foundry business reported robust revenue growth, increasing from $57 million in the previous year to $232 million. This growth was primarily driven by the adoption of advanced packaging techniques, where Intel can combine multiple chip components to create more powerful and efficient integrated circuits. The partnership with Tower Semiconductor is expected to further strengthen Intel’s position in the semiconductor foundry sector.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Unresolved disputes at WTO show deep rifts in global trade

The World Trade Organization (WTO) is confronting a severe crisis characterized by a backlog of unresolved disputes and a growing list of “trade concerns” among its members. This crisis deepened after the United States blocked new appointments to the WTO’s Appellate Body in late 2019, citing complaints over judicial overreach.

U.S. Initiates Sale of Drilling Rights in Wyoming Amidst UN Climate Summit

The Biden administration has initiated the sale of oil and gas drilling rights in Wyoming, raising $3.4 million in the process. This sale, the first in a series, coincides with the United Nations’ climate conference in Dubai. The U.S. Bureau of Land Management (BLM) offered 37 parcels…

Indonesia set to unveil $20 billion energy transition plan

Indonesia is on the verge of unveiling a substantial $20 billion energy transition investment plan, a crucial initiative given the impending United Nations COP28 climate summit. The project, named the Just Energy Transition Partnership (JETP), was initially slated for launch…

Stay informed

error: Content is protected !!