Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Intel Gains on Fresh Push for Foundry Business, Eyes Tower for $6 Billion

Stock Markets Feb 15, 2022 04:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Dhirendra Tripathi

Investing.com – Intel stock (NASDAQ:INTC) traded 1% higher in premarket Tuesday on reports it is close to buying Israeli chipmaker Tower Semiconductor (NASDAQ:TSEM) for nearly $6 billion.

The transaction is in line with CEO Pat Gelsinger’s plans to turn Intel into a contract manufacturer, much like Taiwan Semiconductor Manufacturing (NYSE:TSM), the world’s largest chipmaker with 2021 revenue at about $57 billion. Tower is a much smaller business with 2020 revenue at $1.3 billion. Its shares climbed nearly 51% in premarket.

A foundry making chips that go into cars, servers, TVs and laptops is a complex unit. Very few companies do it all, most choosing to either just design it or manufacture for clients according to their needs. Making chips for more clients that will include rivals will help Intel achieve greater economies of scale.

Last month, Intel committed $100 billion to build potentially the world's largest chip-making complex in Ohio. It is also building two factories in Arizona with an investment of $20 billion. Gelsinger has been pushing to restore his company’s dominance of the industry, and also reshore manufacturing from Asia to shorten supply chains.

At Monday’s market cap of $3.6 billion, the final tag for Tower is likely to include a hefty premium, according to a report in The Wall Street Journal.

Besides its home country, Tower has plants in California, Texas and Japan.

According to a previous report by the WSJ, Intel had hoped to buy GlobalFoundries (NASDAQ:GFS), a bigger company worth around $30 billion, but owner Mubadala, an investment arm of the Abu Dhabi government, opted in favor of a public listing.

 

 

 

Intel Gains on Fresh Push for Foundry Business, Eyes Tower for $6 Billion
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email