- The industry outlook for semiconductors is tainted by supply chain woes, with the bulk of the manufacturing done in East Asia.
- In this respect, Intel's bid to acquire Israel's Tower Semiconductor substantiates its intention to expand the foundry business to become an end-to-end contract manufacturer.
- Intel's current and future presence in the U.S., Asia, and Europe signifies that it should play a key role in the semiconductor supply chain.
- The Tower acquisition together with a collaboration with Samsung Electronics is positive to gain a firmer footing on American soil.
- Both Intel and Tower are buys at current prices.
For further details see:
Intel: The Tower Semiconductor Acquisition Is A Positive For The Supply Chain