Intel cancels Tower Semi acquisition

Intel Corporation has announced that it will no longer be acquiring Tower Semiconductor due to the inability to obtain the necessary regulatory approvals in a timely manner. As a result, Intel will pay a termination fee of $353 million to Tower.

Intel’s CEO, Pat Gelsinger, emphasized the importance of their Foundry efforts in unlocking the full potential of IDM 2.0. He stated that Intel is focused on regaining transistor performance and power performance leadership by 2025, and they are making progress with customers and the broader ecosystem. Gelsinger also expressed respect for Tower and mentioned the possibility of future collaborations.

Stuart Pann, senior vice president and general manager of Intel Foundry Services (IFS), highlighted the success of IFS since its launch in 2021. He mentioned that IFS has gained traction with customers and partners and is working towards becoming the second-largest global external foundry by the end of the decade. Pann emphasized that IFS is differentiating itself as the world’s first open system foundry, offering a wide range of technologies and manufacturing expertise.

Intel’s IFS has shown significant growth over the past year, with a more than 300% year-over-year revenue increase in the second quarter of 2023. This growth is further demonstrated by Intel’s recent agreement with Synopsys to develop intellectual property on Intel 3 and Intel 18A process nodes. Additionally, Intel has been awarded the first phase of the U.S. Department of Defense’s Rapid Assured Microelectronics Prototypes – Commercial (RAMP-C) program and has secured partnerships with ARM and MediaTek.

It is important to note that this release contains forward-looking statements and involves risks and uncertainties. Factors such as changes in demand, competition, technological change, and geopolitical conditions could impact Intel’s business plans and strategy.

Intel Corporation is a leading technology company focused on advancing semiconductor design and manufacturing. Their innovations aim to address customers’ challenges and transform business and society through the power of data.

Background Information

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About ARM:

ARM, originally known as Acorn RISC Machine, is a British semiconductor and software design company that specializes in creating energy-efficient microprocessors, system-on-chip (SoC) designs, and related technologies. Founded in 1990, ARM has become a important player in the global semiconductor industry and is widely recognized for its contributions to mobile computing, embedded systems, and Internet of Things (IoT) devices. ARM's microprocessor designs are based on the Reduced Instruction Set Computing (RISC) architecture, which prioritizes simplicity and efficiency in instruction execution. This approach has enabled ARM to produce highly efficient and power-saving processors that are used in a vast array of devices, ranging from smartphones and tablets to IoT devices, smart TVs, and more. The company does not manufacture its own chips but licenses its processor designs and intellectual property to a wide range of manufacturers, including Qualcomm, Apple, Samsung, and NVIDIA, who then integrate ARM's technology into their own SoCs. This licensing model has contributed to ARM's widespread adoption and influence across various industries.

  

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About Intel:

Intel Corporation, a global technology leader, is for its semiconductor innovations that power computing and communication devices worldwide. As a pioneer in microprocessor technology, Intel has left an indelible mark on the evolution of computing with its processors that drive everything from PCs to data centers and beyond. With a history of advancements, Intel's relentless pursuit of innovation continues to shape the digital landscape, offering solutions that empower businesses and individuals to achieve new levels of productivity and connectivity.

  

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About MediaTek:

MediaTek Inc. is a Taiwanese semiconductor company that designs and manufactures a wide range of system-on-chip (SoC) solutions for various consumer electronics, including smartphones, tablets, smart TVs, wearables, and IoT (Internet of Things) devices. Founded in 1997, MediaTek has become a important player in the semiconductor industry, known for its innovative chipsets that offer a balance of performance, power efficiency, and affordability.

  

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About Synopsys:

Synopsys is a important American software company that specializes in electronic design automation (EDA) and semiconductor intellectual property. Founded in 1986, Synopsys provides tools and solutions for designing and testing complex integrated circuits and electronic systems. Their software aids in the development of semiconductors, electronic products, and software applications, playing a crucial role in advancing technological innovation across various industries. For more detailed information about their products and contributions, you can visit their official website at

  

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About Tower Semiconductor:

Tower Semiconductor, also known as TowerJazz, is a global semiconductor foundry company that provides advanced analog and mixed-signal process technologies. Founded in 1993, Tower Semiconductor is headquartered in Migdal HaEmek, Israel, and operates multiple manufacturing facilities worldwide. The company offers a wide range of specialized semiconductor manufacturing services, including CMOS (Complementary Metal-Oxide-Semiconductor), RF (Radio Frequency), power management, and more. Tower Semiconductor serves various industries such as consumer electronics, automotive, industrial, medical, and aerospace by producing custom-designed chips and integrated circuits. Tower Semiconductor is for its expertise in specialty semiconductor manufacturing, enabling the production of chips with unique features and capabilities. The company's focus on analog and mixed-signal technologies caters to applications that require precise signal processing and connectivity. Their collaborative approach with clients often involves developing tailored solutions to meet specific requirements, positioning them as a reliable partner in the semiconductor manufacturing industry.

  

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Technology Explained

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Foundry: A foundry is a dedicated manufacturing facility focused on producing semiconductor components like integrated circuits (ICs) for external clients. These foundries are pivotal in the semiconductor industry, providing diverse manufacturing processes and technologies to create chips based on designs from fabless semiconductor firms or other customers. This setup empowers companies to concentrate on innovative design without needing substantial investments in manufacturing infrastructure. Some well-known foundries include TSMC (Taiwan Semiconductor Manufacturing Company), Samsung Foundry, GlobalFoundries, and UMC (United Microelectronics Corporation).

Latest Articles about Foundry

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IDM 2.0: Intel IDM 2.0 is Intel's integrated device manufacturing (IDM) strategy introduced at 2021. It is a major evolution of the company's traditional IDM model, which has been in place since its founding in 1968. Under the IDM 2.0 strategy, Intel will continue to design and manufacture its own chips, but it will also become a major provider of foundry services to other companies. This will allow Intel to tap into the growing demand for semiconductor manufacturing capacity, while also generating new revenue streams.

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