Intel to buy Israel’s Tower Semiconductor in $5.4bn deal

Intel has agreed to buy Israeli chip company Tower Semiconductor in a $5.4bn deal.

Under the terms of the transaction, which is expected to close in around 12 months, Intel will pay $53 per share in cash.

Intel said the deal will accelerate its path to becoming a major provider of foundry services and capacity globally, "now offering one of the industry’s broadest portfolios of differentiated technology".

It is expected to be immediately accretive to Intel’s non-GAAP earnings per share.

Intel chief executive officer Pay Gelsinger said: "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.

"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 CEO Russell Ellwanger said: "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. We look forward to being an integral part of Intel’s foundry offering."