Intel to acquire Tower for $5.4 billion to accelerate semiconductor manufacturing

Intel Core i9-11900K review
Intel Core i9-11900K review (Image credit: Harish Jonnalagadda / Windows Central)

What you need to know

  • Intel will purchase chipmaker Tower for $5.4 billion.
  • Tower is an analog semiconductor foundry, and its acquisition will help advance Intel's IDM 2.0 strategy.
  • Intel announced plans to produce processors for other companies in March 2021.

Intel announced that it will acquire Tower for $5.4 billion. Tower is a foundry for analog semiconductors that's based in Israel. Intel views Tower as a complementary piece since the two companies specialize in different technologies within the semiconductor industry.

The move to acquire Tower lines up with Intel's new IDM 2.0 strategy, which centers around making processors for other companies. Intel has also announced plans for two chip factories in New Albany, Ohio, and a $20 billion chip factory in Arizona. In addition to helping Intel's portfolio, expanded chip production should help combat the ongoing global chip shortage.

"Tower's specialty technology portfolio, geographic reach, deep customer relationships and services-first operations will help scale Intel's foundry services and advance our goal of becoming a major provider of foundry capacity globally," said Intel CEO Pat Gelsinger. "This deal will enable Intel to offer a compelling breadth of leading-edge nodes and differentiated specialty technologies on mature nodes – unlocking new opportunities for existing and future customers in an era of unprecedented demand for semiconductors."

Tower specializes in radio frequency, power, silicon-germanium, and industrial sensors. The company also has several design automation partnerships, which should help expand Intel's ability to manufacture semiconductors.

"Tower has built an incredible range of specialty analog foundry solutions based upon deep customer partnerships, with worldwide manufacturing capabilities," said Tower CEO Russell Ellwanger. "Together with Intel, we will drive new and meaningful growth opportunities and offer even greater value to our customers through a full suite of technology solutions and nodes and a greatly expanded global manufacturing footprint."

Intel will purchase Tower's shares for $53 each. It's anticipated that the deal will take about 12 months to conclude. During that time, Tower will continue to run independently.

Sean Endicott
News Writer and apps editor

Sean Endicott brings nearly a decade of experience covering Microsoft and Windows news to Windows Central. He joined our team in 2017 as an app reviewer and now heads up our day-to-day news coverage. If you have a news tip or an app to review, hit him up at