TSEM - After Intel's Failed Acquisition Is Tower Semiconductor Stock a Buy?
2023-09-24 08:05:00 ET
It was no surprise that Intel (NASDAQ: INTC) had to walk away from its bid to acquire Israel's chip manufacturer Tower Semiconductor (NASDAQ: TSEM) . The clock was ticking, and regulators in China were in no hurry to approve the tie-up .
Just a couple weeks after the acquisition termination, though, Intel and Tower announced a different kind of partnership: Tower will utilize an Intel fab in New Mexico to expand production for Tower customers. Does this new information make Tower stock a buy now?
As for the details of this deal, Tower will be investing approximately $300 million into Intel's fab (a factory that makes chips) outside of Albuquerque, New Mexico. Intel calls this fab its "Innovation Hub" and had previously announced a $3.5 billion investment in 2021 to expand its New Mexico facility's capabilities in advanced chip packaging. Intel calls its packaging tech Foveros -- the process of cutting chips from silicon wafers, which then get assembled into computing and other electronic systems. Intel's expansion was slated for completion sometime in 2023.
For further details see:
After Intel's Failed Acquisition, Is Tower Semiconductor Stock a Buy?