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Intel’s $5.4 Billion Tower Semiconductor Acquisition as Chip Shortage Solution? CEO Says Move It’s a Great Deal

Intel’s $5.4 billion Tower Semiconductor acquisition might maybe maybe well abet the chipmaker resolve the fresh SoC shortage. Intel and diversified large chipset producers are silent having difficulties assembly customers’ demands.  

(Photo : Photo by Justin Sullivan/Getty Photography)

SANTA CLARA, CA – APRIL 26: The Intel logo is displayed originate air of the Intel headquarters on April 26, 2018 in Santa Clara, California. Intel will document first quarter earnings this day after the closing bell.

With that, many merchandise are affected. The American multinational tech company now determined to extend its manufacturing footprint by procuring the Israeli chipmaker Tower Semiconductor. 

Intel used to be in a build of living to cease the deal for $5.4 billion or $53 per fragment. Right here is a predominant acquisition for the U.S.-based mostly tech manufacturer since Tower Semiconductor is effectively-acknowledged for producing quality SoCs for the automotive industry and diversified tech markets. 

Intel’s Tower Semiconductor Acquisition a Immense Deal?

In accordance with Forbes’ most up-to-date document, the Tower Semiconductor acquisition of Intel came after the firm announced its most up-to-date $20 billion funding in Ohio. 

(Photo : Photo by Justin Sullivan/Getty Photography)

SANTA CLARA, CA – JANUARY 16: The Intel logo is displayed originate air of the Intel headquarters on January 16, 2014 in Santa Clara, California. Intel will document fourth quarter earnings after the closing bell.

Also Be taught: Intel Launches $1 Billion Fund to Originate a Foundry Innovation Ecosystem

Earlier than Intel got the Israeli chipmaker, it first invested in two unique chip-making factories in Ohia earlier this 2022. 

Now, it made yet another large rob after procuring Tower Semiconductor, which CEO Pat Gelsinger considers a gargantuan deal for the reason that switch completely suits Intel’s imaginative and prescient. 

“Tower’s arena of expertise know-how portfolio, geographic attain, deep buyer relationships, and companies and products-first operations will abet scale Intel’s foundry companies and products and advance our goal of becoming a predominant supplier of foundry skill globally,” said the CEO via Tech Crunch’s document. 

Why Tower Semiconductor Acquisition is a Sizable Deal

Moor Insight & Systems Predominant Analyst, Patrick Moorhead, outlined that the most up-to-date Tower Semiconductor acquisition might maybe maybe well very a lot relief Intel in the prolonged speed. 

He added that the acquisition would allow the American SoC maker to fabricate the form of silicon it never might maybe maybe well. This implies that Intel can now contain RF, sensors, energy management SoCs, as well to silicon photonics. 

Dylan Patel, a SemiAnalysis chief analyst, backed this, announcing that the Tower Semiconductor acquisition is de facto a effectively-organized switch from the tall chipmaker. 

Excluding for these, Patel also believes that the Israeli SoC maker can abet Intel enhance its potential to contain extensible and versatile PDKs (manufacturing type kits). 

Objective now, it’s silent exhausting to expose if the most up-to-date decision of Intel can fully resolve its ongoing chipset shortage. Have in mind, Gelsinger claimed that the global chip shortage can final unless 2023. 

For added records updates about Intel and its upcoming actions, continuously maintain your tabs originate here at TechTimes.  

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Written by: Griffin Davis

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