Intel has spent $5.4 billion on a “low-end” semiconductor company. and has done very well

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Intel announced yesterday the purchase of Tower Semiconductor. It’s not a small deal: Intel has paid 5.4 billion dollars by the Israeli company, and it may be surprising to know that this company is dedicated to making chips that are much less advanced than those of Intel.

In fact, Tower Semiconductor has 65nm photolithographic processes, a technology that Intel was already using in 2006. Why bet on that company? Easy: because the Israeli company has several manufacturing plants and because the world does not live on computers alone: Many other sectors take advantage of these “low-advanced” chips because they are fantastic for those areas.

Intel wants to go back to being the great chipmaker it was

Pat Gelsinger is clear that the future of Intel happens to be a reference again in the world of semiconductor manufacturing. TSMC and Samsung had turned the tables, but Intel’s new CEO has been taking steps to fulfill his plan for some time.

The so-called Intel Foundry Services are the absolute axis of a strategy that Intel is now reinforcing with the acquisition of Tower Semiconductor. this manufacturer is known for its analog productsand the types of chips it produces are MEMS, RF CMOS, BiCMOS, MOS image sensors, silicon germanium transistors, and power management chips.

An industry in the hands of TSMC and Asian factories: the map of world chip production

Not only that: with this operation, Intel appropriates —or is a co-owner— of the eight manufacturing plants which uses Tower Semiconductor. The company has one 150mm and one 200mm wafer plant in Israel, but is also the majority shareholder in two 200mm and one 300mm wafer plant in Japan, as well as a future 300mm one in Italy.

The chips produced by Tower Semiconductor are oriented to very specific markets and in them those “little advanced” photolithographic processes they are not a disadvantage, quite the opposite: the technologies are proven and are a guarantee against state-of-the-art processes.

Among those industries, by the way, is one that is having a very hard time lately due to the shortage of chips: the automotivein which Tower already had various solutions and in which now Intel will have a lot to say.

More information | Intel | Tower Semiconductor

Intel announced yesterday the purchase of Tower Semiconductor. It’s not a small deal: Intel has paid 5.4 billion dollars by…

Intel announced yesterday the purchase of Tower Semiconductor. It’s not a small deal: Intel has paid 5.4 billion dollars by…

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