Intel nears $6 bln deal to get Tower Semiconductor – source

The Intel Company logo is noticed on a display screen in a retailer in Manhattan, New York Town, U.S., November 24, 2021. REUTERS/Andrew Kelly

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Feb 14 (Reuters) – Intel Corp is near to buying Israeli firm Tower Semiconductor (TSEM.TA) for about $6 billion, a resource common with the make any difference said, as the U.S. firm appears to be to progress its technique of agreement manufacturing chips for other firms.

A deal could be unveiled as shortly as this 7 days, the person stated on Monday, declining to be named as the subject was non-public.

The potential acquire would deepen Intel’s presence in a space dominated by Taiwan-centered TSMC , the world’s largest deal chipmaker. It also arrives at time when the worldwide semiconductor scarcity has hampered the creation of every little thing from smartphones to cars and trucks.

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Tower Semiconductor, whose U.S. shares surged 53% in extended trading, specializes in analog chips utilized in the automotive, mobile, health care and aerospace industries. It had a sector capitalization of $3.6 billion as of Monday’s near.

Both of those Intel and Tower Semiconductor did not right away reply to requests for remark.

The U.S. chipmaker claimed last thirty day period it would devote up to $100 billion to develop perhaps the world’s major chip-producing sophisticated in Ohio. The transfer is aimed at restoring Intel’s dominance in chip-making and reducing America’s reliance on Asian production hubs.

Intel was also hunting to invest in GlobalFoundries (GFS.O) for about $30 billion, according to a Wall Road Journal report in July, but the chipmaker went public a handful of months afterwards.

Chipmaking is high priced and challenging, so most companies both layout or produce. Intel has opened up its factories to rival semiconductor designers to unfold expenditures.

Intel shares were being up .4% following the news on the Tower Semiconductor offer, which was 1st described by the Wall Street Journal.

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Reporting by Eva Mathews in Bengaluru Editing by Aditya Soni

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