TSEM - Intel Foundry Teams Up With Tower Semiconductor After Failed Acquisition
2023-09-06 06:10:00 ET
In February 2022, semiconductor giant Intel (NASDAQ: INTC) agreed to a $5.4 billion acquisition of Tower Semiconductor (NASDAQ: TSEM) , a foundry for analog semiconductor solutions. Had the acquisition gone through, Intel would have added a slate of specialty technologies on mature process nodes to its own foundry business, which is a pillar of the company's turnaround efforts.
But that deal was not to be. While the acquisition passed muster at most regulatory agencies around the world, China's refusal to approve the deal led to its demise, announced last month. Intel will pay Tower a $353 million termination fee.
While Tower will not become part of Intel, the two companies have found another way to deepen their relationship. Intel announced on Tuesday that the two companies have reached an agreement that will give a boost to Intel's foundry services business while providing increased U.S. manufacturing capacity to Tower.
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Intel Foundry Teams Up With Tower Semiconductor After Failed Acquisition