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Intel’s $5.4 Billion Tower Semiconductor Acquisition as Chip Scarcity Resolution? CEO Says Transfer It is a Nice Deal

Intel’s $5.4 billion Tower Semiconductor acquisition would possibly assist the chipmaker resolve the present SoC scarcity. Intel and different big chipset producers are nonetheless having difficulties assembly shoppers’ calls for.  

(Picture : Picture by Justin Sullivan/Getty Photos)SANTA CLARA, CA – APRIL 26: The Intel emblem is displayed exterior of the Intel headquarters on April 26, 2018 in Santa Clara, California. Intel will report first quarter earnings immediately after the closing bell.

With that, many merchandise are affected. The American multinational tech agency now determined to develop its manufacturing footprint by buying the Israeli chipmaker Tower Semiconductor. 
Intel was capable of shut the deal for $5.4 billion or $53 per share. This can be a main acquisition for the U.S.-based tech producer since Tower Semiconductor is well-known for producing high quality SoCs for the automotive business and different tech markets. 
Intel’s Tower Semiconductor Acquisition a Nice Deal?
Based on Forbes’ newest report, the Tower Semiconductor acquisition of Intel got here after the corporate introduced its latest $20 billion funding in Ohio. 

(Picture : Picture by Justin Sullivan/Getty Photos)SANTA CLARA, CA – JANUARY 16: The Intel emblem is displayed exterior of the Intel headquarters on January 16, 2014 in Santa Clara, California. Intel will report fourth quarter earnings after the closing bell.

Additionally Learn: Intel Launches $1 Billion Fund to Construct a Foundry Innovation Ecosystem

Earlier than Intel acquired the Israeli chipmaker, it first invested in two new chip-making factories in Ohia earlier this 2022. 
Now, it made one other huge buy after buying Tower Semiconductor, which CEO Pat Gelsinger considers an ideal deal because the transfer completely matches Intel’s imaginative and prescient. 
“Tower’s specialty know-how portfolio, geographic attain, deep buyer relationships, and services-first operations will assist scale Intel’s foundry companies and advance our objective of turning into a serious supplier of foundry capability globally,” stated the CEO by way of Tech Crunch’s report. 
Why Tower Semiconductor Acquisition is a Massive Deal
Moor Perception & Methods Principal Analyst, Patrick Moorhead, defined that the most recent Tower Semiconductor acquisition might vastly profit Intel in the long term. 
He added that the acquisition would permit the American SoC maker to provide the kind of silicon it by no means might. Which means that Intel can now create RF, sensors, energy administration SoCs, in addition to silicon photonics. 
Dylan Patel, a SemiAnalysis chief analyst, backed this, saying that the Tower Semiconductor acquisition is definitely a sensible transfer from the large chipmaker. 
Other than these, Patel additionally believes that the Israeli SoC maker might help Intel increase its capacity to fabricate extensible and versatile PDKs (manufacturing design kits). 
Proper now, it’s nonetheless laborious to inform if the most recent choice of Intel can utterly resolve its ongoing chipset shortage. Keep in mind, Gelsinger claimed that the international chip scarcity can final till 2023. 
For extra information updates about Intel and its upcoming actions, all the time preserve your tabs open right here at TechTimes.  
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Written by: Griffin Davis

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