Intel to get Israel's tower for $ 5.4 billion; Aims to expand specialized chip making

The attainment will grow Intel's presence in the Taiwan-based TSMC-dominated industry at a time when global semiconductor lacks  are hampering production of everything from smartphones to cars.

Intel Corporation to acquire Israel's chipmaker tower semiconductor for $ 5.4 billion, companies were said  on Tuesday, adding that they provide access to specialized products and are in a better position to take advantage of the growing demand for semiconductors

They rise 48% in after-trade trading on the Nostalk on Monday, following reports of a possible acquisition. Previous announcement was  that tower has a market value of $ 3.6 billion

Tower's specialized technology portfolio will enable us to scale Intel's foundry services and advance our goal of providing foundry capabilities globally, "said Pat Gelsinger, Intel's Chief Executive Officer.

The agreement will enable Intel to provide pioneering nodes and differentiated specialized technologies at mature nodes - in an era of unprecedented demand for semiconductors and open up new opportunities for future customers, ” this was said in a statement.

The move is aimed at restoring Intel's dominance in chip production and undermining US confidence in Asian manufacturing hubs

The US chipmaker said last month it would invest up to $ 100 billion to build the world's largest chip-making complex in Ohio.

Intel has a large presence in Israel for almost 50 years and it is one of Israel's largest exporters. In 2017, it bought the Israeli automotive technology company Mobileye for $ 15.3 billion. Chipmaker has five sites in Israel and 14,000 employees

It is expected to be available immediately for earnings per share of Intel's non-GAAP. Intel said it would like to finance the acquisition with cash from its balance sheet.

Tower will release its fourth quarter and fiscal year 2021 financial results on Thursday.