Intel Purchased 'Tower Semiconductor' to Bolster its Foundry
Colin Smith — February 18, 2022 — Tech
In continuing the expansion of its foundry business, Intel has announced the acquisition of 'Tower Semiconductor' for $5.4 billion. Tower Semiconductor is an Isreal-based chip manufacturer that primarily produces specialty parts such as radio frequency chips and CMOS image sensors. In the midst of the current semiconductor shortage, Intel has sought the acquisition of this manufacturer in order to bolster its foundry business, sell to third-party buyers, and ramp up production of the chips.
Intel has previously invested large sums of money into its foundry business and production lines, so it is likely that it will sizably expand Tower Semiconductor's product line and manufacturing speed. Through the acquisition of Tower Semiconductor, Intel has come into possession of various facilities around the world from the United States to Japan. This Intel Foundry Services venture could increase the availability of specialty chip parts for technology manufacturers, which could reduce prices and increase the availability of goods.
Image Credit: Intel, Intel Foundry Services
Intel has previously invested large sums of money into its foundry business and production lines, so it is likely that it will sizably expand Tower Semiconductor's product line and manufacturing speed. Through the acquisition of Tower Semiconductor, Intel has come into possession of various facilities around the world from the United States to Japan. This Intel Foundry Services venture could increase the availability of specialty chip parts for technology manufacturers, which could reduce prices and increase the availability of goods.
Image Credit: Intel, Intel Foundry Services
Trend Themes
1. Foundry Expansion - As Intel continues to acquire manufacturing facilities and invest in its foundry business, there is an opportunity to disrupt the semiconductor industry by ramping up production of specialty chips.
2. Chip Manufacturing Consolidation - With Intel's acquisition of Tower Semiconductor, there is a trend towards consolidation in chip manufacturing, which could lead to increased efficiency and reduced costs.
3. Specialty Chip Production - The current semiconductor shortage has highlighted the need for specialty chip production, presenting opportunities for companies like Intel to expand their product lines.
Industry Implications
1. Semiconductor Manufacturing - Intel's acquisition of Tower Semiconductor is likely to disrupt the semiconductor manufacturing industry and lead to increased consolidation.
2. Electronics Manufacturing - The expansion of Intel's foundry business presents an opportunity for electronics manufacturers to source specialty chips and reduce their prices.
3. Technology Investment - Investment in the chip manufacturing industry, particularly in specialty chip production, could yield significant returns in the current market.
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