Intel to buy Tower Semiconductor for $6 billion: Report

Intel Corp. will acquire an Israeli chipmaking firm Tower Semiconductor Ltd. for nearly $6 billion, The Wall Street Journal reported citing anonymous sources. 

The report also claimed that the US chipmaking giant is looking to reinforce its presence in the contract manufacturing space for other businesses. 

Reuters, citing sources, has also reported that a deal could be announced as soon as this week. However, there is not any official confirmation about the development. 

Tower Semiconductor manufactures integrated circuits for more than 300 customers worldwide in growing markets such as consumer, automotive, medical, industrial, and aerospace & defence, among others. Industry analysts reckon that taking over Tower Semiconductor will enable Intel to gain a strategic foothold in the chip-foundry business — contract manufacturing of semiconductors for other companies. 

Apart from going for acquisitions, Intel is also planning to spend $20 billion to set up a large chip manufacturing facility in New Albany, Ohio, in the US. The facility will include at least two semiconductor fabs where the chip company will develop and manufacture its latest lineup of chipsets.

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Recently, Intel has also announced a billion-dollar fund to help companies build custom chip designs and architectures. Called the Foundry Innovation Ecosystem, the fund aims to accelerate the demand for custom chip products from companies and the time they take to bring products to the market.