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<\/p>\nFebruary 15, 2022<\/p>\n
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(Reuters) -Intel Corp is close to buying Israeli firm Tower Semiconductor for about $6 billion, a source familiar with the matter said, as the U.S. company looks to advance its strategy of contract manufacturing chips for other businesses.<\/p>\n
A deal could be unveiled as soon as this week, the person said on Monday, declining to be named as the matter was private.<\/p>\n
The potential purchase would deepen Intel’s presence in a space dominated by Taiwan-based TSMC, the world’s largest contract chipmaker. It also comes at time when the global semiconductor shortage has hampered the production of everything from smartphones to cars.<\/p>\n
Tower Semiconductor, whose U.S. shares surged 53% in extended trading, specializes in analog chips used in the automotive, mobile, medical and aerospace industries. It had a market capitalization of $3.6 billion as of Monday’s close.<\/p>\n
Both Intel and Tower Semiconductor did not immediately respond to requests for comment.<\/p>\n
The U.S. chipmaker said last month it would invest up to $100 billion to build potentially the world’s largest chip-making complex in Ohio. The move is aimed at restoring Intel’s dominance in chip-making and reducing America’s reliance on Asian manufacturing hubs.<\/p>\n
Intel was also looking to buy GlobalFoundries for about $30 billion, according to a Wall Street Journal report in July, but the chipmaker went public a few months later.<\/p>\n
Chipmaking is expensive and difficult, so most companies either design or produce. Intel has opened up its factories to rival semiconductor designers to spread costs.<\/p>\n