Intel Corp is buying Tower Semiconductor, an Israeli company specializing in chipmaking. As reported by Reuters and the Algemeiner, the move comes at an opportune time, “when the global semiconductor shortage has hampered the production of everything from smartphones to cars.” It will also help to restore Intel’s dominance in the field at a moment when the U.S. is highly reliant on Asian chipmakers.
The acquisition will deepen Intel’s presence in a sector dominated by the Taiwan-based TSMC, the world’s largest chipmaker.
“Tower’s specialty technology portfolio (and) geographic reach . . . will help scale Intel’s foundry services and advance our goal of becoming a major provider of foundry capacity globally,” said Intel’s chief executive Pat Gelsinger.
“This deal will enable Intel to offer a compelling breadth of leading-edge nodes and differentiated specialty technologies on mature nodes—unlocking new opportunities for existing and future customers in an era of unprecedented demand for semiconductors,” he said in a statement.