Intel Corp. (Nasdaq: INTC) is close to buying Israeli chipmaker Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE:TSEM) for $6 billion, according to a report in the “Wall Street Journal.” Migdal Ha’Emek based Tower’s share price is up 48.05% in afterhours trading on Wall Street, after closing last night at $33.13, giving a market cap of $3.821 billion. The acquisition is part of Intel’s aggressive strategic plan to expand production capability in a range of technologies and products. According to the report the deal is expected to be announced this week, “assuming that the talks don’t break down.”
The global shortage of chips since the outbreak of the Covid pandemic and the growing worldwide appetite for technology have pushed up Tower’s revenue and profits to record heights. The company, headed by CEO Russell Ellwanger, produces analog chips for a range of customers in the computer, vehicle, communications and defense industries.
Published by Globes, Israel business news – en.globes.co.il – on February 15, 2022.
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