Intel acquires Israeli tech firm

Intel announced today an agreement to acquire the Israeli circuit manufacturer Tower Semiconductor. 

Intel will buy Tower Semiconductor’s stock at a price of $53 per share, making the total cost of the acquisition around $5.4 billion. The purchase will provide Intel with growth opportunities in Israel, the United States and other areas and help it meet an “unprecedented industry demand” for chips, the company said in a press release. 

Intel, based in the US tech hub Silicon Valley, is one of the biggest computer chip manufacturers in the world. Tower Semiconductor also makes computer chips and is based in the Israeli city of Netanya. Tower has factories in Israel, the US and Japan. 

Intel has a longstanding presence in Israel, beginning operations there in 1974. Its three development centers in the country are working on artificial intelligence, autonomous cars and more. Intel also has a manufacturing center in the country and more than 10,000 employees overall there, according to its website. 

Intel has acquired six other Israeli companies in the past five years, including companies working on 3D images, self-driving technology and more, according to The Times of Israel. 

Tower Semiconductor’s stock shot up 40 percent on NASDAQ following news of the acquisition. 

The final agreement is expected to close in around a year, according to the press release.