Intel announced has agreed to buy Tower Semiconductor for $5.4 billion, in an effort to meet the huge demand for computer chips.
Tower Semiconductor is an Israeli semiconductor manufacturing company and the acquisition agreement will give Intel stronger access to specialized technologiesin which Tower specializes (radio frequency, industrial sensors and others).
See also: Intel: New crypto chip is designed to be energy efficient
Pat Gelsinger, who took over as Intel CEO a year ago, is betting that it can compete with Taiwan Semiconductor Manufacturing Co.in the chip-making market. His plan for Intel includes modernizing its factories and building new ones, aiming to restore its leadership in chip technology.
The acquisition of Tower Semiconductor is part of Pat Gelsinger's strategy to make huge investments to boost production.
Intel is trying to meet global demand for chips in a number of ways. In January, a report was released saying that the company plans to build the world's largest chip factory in Ohio.
Learn more: Report: Intel plans to build chip factory in Ohio
The acquisition agreement between Intel and Tower Semiconductor is expected to close in approximately 12 months and has already been approved by the boards of directors of both companies.
According to a statement from the companies, Tower will remain independent until the deal closes. After that, Tower will be integrated into Intel Foundry Services (IFS), which Intel founded a year ago to help meet global demand for semiconductor manufacturing capacity.
See also: Chip shortage will last until the second half of 2022
A few words about Intel
Intel Corporation, also known as Intel, is an American multinational technology company headquartered in California. It is the world's largest chip manufacturer (by revenue) and is the manufacturer of the x86 microprocessor family, the processors found in most personal computers (PCs).
Source: CNBC
