Intel Corporation has plans to acquire Tower Semiconductor, a leading foundry for analog semiconductor solution, for approximately USD 5.4 billion. The acquisition will help Intel advance its IDM 2.0 strategy as the company further expands its manufacturing capacity, global footprint and technology portfolio to address unprecedented industry demand.

“Tower’s speciality technology portfolio, geographic reach, deep customer relationships and services-first operations will help scale Intel’s foundry services and advance our goal of becoming a major provider of foundry capacity globally,” said Intel CEO Pat Gelsinger.

Intel established Intel Foundry Services in 2021 to meet the growing demand for semiconductors. 

Intel plans to close the deal in 12 months. IFS and Tower Semiconductor will operate independently until the deal is completed. Intel plans to incorporate both IFS and Tower Semiconductor into a fully integrated foundry business. Until the deal is closed, IFS will be led by Dr Randhir Thakur, president of Intel Foundry Services, while Tower Semiconductor will be headed by Russell Ellwanger, Chief Executive Officer of Tower Semiconductor.

Intel with its strong research and development capabilities combined with Tower’s expertise in technology and manufacturing footprint will complement Intel’s IFS capabilities in leading-edge processes, and help provide broader offerings to customers at scale.