Washington, Feb. 15 (BNA) – Intel Corporation said it is buying the Israeli company Tower Semiconductor for $5.4 billion in a deal that could give the California chip giant an edge in making custom chips.
Intel CEO Pat Gelsinger said Tuesday that the Tower acquisition will help expand Intel’s newly created “foundry” business that makes microprocessors for other companies, according to the Associated Press.
Tower, headquartered in Migdal HaEmek, Israel, specializes in the manufacture of analog chips used in automobiles, mobile devices, and in the industrial, medical, and military sectors.
The two companies said it could take a year to close the deal. It is approved by each company’s board of directors but will face scrutiny from government regulators.
Amid growing demand for semiconductors and an ongoing global chip shortage, Santa Clara, California-based Intel said the deal will also help expand its manufacturing capacity and global footprint.
Many chip makers are seeking to diversify their supply chains to prevent disruptions from pandemic shutdowns and other unforeseen events.
insult