Intel and Tower’s Foundry Deal and $300M Investment
In a surprising turn of events, Intel and Tower Semiconductor announced a strategic partnership following regulatory challenges that halted their $5.4 billion acquisition plan.
In this agreement, Intel will provide foundry services and access to its 300mm manufacturing capacity at the New Mexico plant, operated by Intel Foundry Services (IFS). Additionally, Tower Semiconductor will invest up to $300 million to acquire essential equipment and assets for the facility.
“We launched Intel Foundry Services with a long-term view of delivering the world’s first open system foundry that brings together a secure, sustainable, and resilient supply chain with the best of Intel and our ecosystem. We’re thrilled that Tower sees the unique value we provide and chose us to open their 300mm U.S. capacity corridor,” said Stuart Pann, Intel SVP and GM of Intel Foundry Services, in a statement.
This collaboration will focus on producing Tower’s 65-nanometer power management BCD flows, with complete process flow qualification set for 2024. Additionally, it aims to develop advanced power management and radio frequency silicon-on-insulator (RF-SOI) solutions.
The timing of this move is crucial, coinciding with broader initiatives to boost hardware manufacturing within the United States. Recent efforts like CHIPS and the Science Act have pushed for reducing reliance on outsourcing and international partnerships.
This partnership, though potentially less financially rewarding than the planned acquisition, marks a significant step in achieving Intel’s broader objectives.
