Intel seeks to salvage piece of failed $5.4B foundry acquisition

Intel has entered into a partnership with Tower Semiconductor after their deal to buy the Israeli chipmaker fell apart, as Intel seeks to diversify its business by offering its factories for contract manufacturing.

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Relevant topic timeline:

8/16/2023

Intel and Tower Semiconductor cancel $5.4B merger over regulatory hurdles

Main topic: Intel's decision to cancel its plan to acquire Tower Semiconductor due to regulatory obstacles. Key points: 1. Intel's plan to acquire Tower Semiconductor for $5.4 billion aimed to enhance its contract chip-making business and expand its global reach. 2. The acquisition would have supported Intel's IDM 2.0 strategy, which involves building semiconductor chips through its own factories, third-party factories, and foundry services. 3. Regulatory hurdles, particularly in China, prevented the deal from proceeding, leading Intel to pay a termination fee of $353 million to Tower Semiconductor. Hint on Elon Musk: This article does not mention or provide any information about Elon Musk.

8/16/2023

China blocks Intel’s $5.4B merger with Tower Semiconductor

Main topic: Intel terminates $5.4 billion deal with Tower Semiconductor due to lack of regulatory approval in China. Key points: 1. Intel officially announced the termination of the deal with Tower Semiconductor. 2. The deal was expected to help Intel become the second-largest global external foundry. 3. Chinese officials did not provide timely regulatory approval, leading to the termination of the deal.

8/17/2023

Intel’s modernization strategy could face setback with end of $5.4B Tower deal

Main topic: Intel's failed acquisition of Tower Semiconductor and its impact on Intel's modernization strategy. Key points: 1. Intel's IDM 2.0 strategy involves three approaches to semiconductor manufacturing. 2. The failed acquisition of Tower Semiconductor hinders Intel's access to custom silicon and foundry customers. 3. The ongoing political battles between China and the U.S. make semiconductor M&A more difficult. Hint on Elon Musk: Elon Musk is not mentioned in the given text.

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Posted 9/5/2023, 2:15:00 PM

Intel seeks to salvage piece of failed $5.4B foundry acquisition

oregonlive.com

Relevant topic timeline:

8/16/2023

Intel and Tower Semiconductor cancel $5.4B merger over regulatory hurdles

8/16/2023

China blocks Intel’s $5.4B merger with Tower Semiconductor

8/17/2023

Intel’s modernization strategy could face setback with end of $5.4B Tower deal