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Intel terminates acquisition of Tower Semiconductor

Intel terminates acquisition of Tower Semiconductor

Posted Date: 2023-08-18

August 17, 2023 /SemiMedia/ — Intel Company not too long ago introduced that it has mutually agreed with Tower Semiconductor to terminate its beforehand disclosed settlement to amass Tower as a result of lack of ability to acquire in a well timed method the regulatory approvals required below the merger settlement, dated Feb. 15, 2022.​

In accordance with the phrases of the merger settlement and in reference to its termination, Intel can pay a termination price of $353 million to Tower. 

“Our foundry efforts are vital to unlocking the total potential of IDM 2.0, and we proceed to drive ahead on all aspects of our technique,” mentioned Pat Gelsinger, CEO of Intel. “We're executing nicely on our roadmap to regain transistor efficiency and energy efficiency management by 2025, constructing momentum with clients and the broader ecosystem and investing to ship the geographically various and resilient manufacturing footprint the world wants. Our respect for Tower has solely grown by this course of, and we are going to proceed to search for alternatives to work collectively sooner or later.” ​

Stuart Pann, senior vp and common supervisor of Intel Foundry Companies (IFS), mentioned, “Since its launch in 2021, Intel Foundry Companies has gained traction with clients and companions, and we now have made vital developments towards our purpose of changing into the second-largest international exterior foundry by the top of the last decade. We're constructing a differentiated buyer worth proposition as the world’s first open system foundry, with the expertise portfolio and manufacturing experience that features packaging, chiplet requirements and software program, going past conventional wafer manufacturing.”​

IFS has made vital strides over the previous yr as demonstrated by its greater than 300% year-over-year income enhance within the second quarter of 2023. This momentum is additional illustrated by Intel’s latest settlement with Synopsys to develop a portfolio of mental property (IP) on Intel 3 and Intel 18A course of nodes. Intel was additionally awarded the primary section of the U.S. Division of Protection’s Speedy Assured Microelectronics Prototypes – Industrial (RAMP-C) program, with 5 RAMP-C clients in design engagement on Intel 18A. As well as, Intel landed a multigeneration settlement with Arm to allow chip designers to construct low-power compute system-on-chips (SoCs) on 18A, and Intel signed a strategic partnership with MediaTek to make use of IFS’ superior course of applied sciences.