Monday , 27 May 2024
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Global Economy

Intel buys Israeli chip company

The US chip manufacturer Intel is planning a multi-billion dollar acquisition in Israel. Intel is willing to pay $5.4 billion for the Tower Semiconductor. As both companies announced, the takeover should be completed within the next twelve months – provided that supervisory authorities and shareholders approve.

Semiconductors for cars and medical technology

According to its own statements, Intel wants to expand its product range in the semiconductor sector and, above all, to greatly expand the production capacities for the coveted microchips. Globally, demand far exceeds supply. The construction of new plants takes years. The acquisition of already existing production facilities increases the production capacity faster.

Tower Semiconductor has been in business for almost 30 years and produces analog semiconductor chips in plants in Israel, Japan and the USA, which are used in cars and medical technology, among other things.

For Intel, this is the sixth takeover of an Israeli high-tech company in around five years. In 2017, Intel bought Mobileye, a company specializing in autonomous driving, for around $15 billion. To date, it is the most expensive company takeover in Israeli economic history.

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