Weeks after Intel’s proposed $5.4 billion acquisition of Israel-based Tower Semiconductor fell apart, the two firms announced plans for Intel to provide foundry services to its former acquisition target.
As part of the deal, Tower will invest up to $300 million to acquire and own equipment and other fixed assets at Intel’s New Mexico fabrication plant. Tower will eventually have a capacity of over 600,000 photo layers per month to manufacture its analog CMOS chips.
Tower already owns fabs in Israel, the U.S., and Japan, and it plans to launch in Italy soon. But the existing fabs create 200 mm wafers. The New Mexico facility will create 300 mm wafers, increasing production quantity.
To read this article in full, please click here