Intel’s acquisition of Tower Semiconductor is expected to be completed within Q2 2023

In March 2021, Pat Gelsinger, the CEO of Intel, announced the “IDM 2.0” strategy, in which creating world-class Intel foundry services (IFS) is an important component. To achieve this, Intel acquired Israeli semiconductor company Tower Semiconductor in February of last year for approximately $5.4 billion in cash or $53 per share.

According to BizPortal, Intel had originally planned to complete the acquisition of Tower Semiconductor in the first quarter of this year, but due to the fact that the State Administration for Market Regulation (SAMR) has not yet approved the transaction, it is likely to be postponed. It has been reported previously that Intel’s acquisition has encountered difficulties, and SAMR suspended its review of the deal in January of this year.

Intel stated in a statement provided to the media that it will continue to work towards completing the acquisition of Tower Semiconductor in the first quarter of 2023, but the transaction may be delayed until later that year, with approval expected in the first half of 2023.

The acquisition of Tower Semiconductor allows Intel to achieve multiple goals: first, it will obtain a wafer fabrication plant with dozens of loyal customers and a stable source of revenue, which will supplement its existing foundry services; second, it will gain access to a wafer fab with mature process nodes that have been widely adopted, the importance of which should not be underestimated; third, it will acquire a team of experienced executives from various industries, whose extensive experience in contract chip manufacturing is currently lacking at Intel.