Intel to purchase Tower Semiconductors

By: Miguel A. Rodriguez

14:37, 15 February 2022

Intel is expanding its manufacturing capabilities by purchasing Tower Semiconductors

Intel announced today that it struck a $5.4 billion deal with the Israeli chip company. The tech giant will pay $53 per share in cash for Tower, a 60% premium to Monday’s close.

The deal is part of Intel’s manufacturing capacity strategy, designating up to $28 billion for 2022 back in October. It recently revealed that it would spend more than $20 billion to build a mega manufacturing facility in Ohio and $20 billion for sites in Arizona. These efforts and spending were met with concern by market experts because the spending affects the company’s gross margins.

According to Intel, the acquisition will immediately lift its adjusted earnings per share upon closing, and it will be funded with cash from the balance sheet.

At the moment of writing, Intel’s stock price was trading 1.07% higher.


Share this article

The information presented herein is prepared by and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only.Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience, or current financial situation. 

Key Way Markets Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance and forecasts are not reliable indicators of future results.