Intel Foundry Services partners with Tower Semiconductor to produce 65nm chips, expanding their manufacturing capabilities.

Intel and Tower Semiconductor have announced a collaboration in which Intel will manufacture chips for Tower at its Fab 11X facility in New Mexico, providing Tower with additional capacity to meet the growing demand for 300mm advanced analog processing and Intel with the opportunity to fully utilize its Fab 11X capacity.

Intel Foundry Services (IFS) will begin producing chips for Tower in 2024.
Tower plans to invest up to $300 million in procuring fab tools and other assets for Intel's Fab 11X.
The increased scale resulting from this collaboration allows Tower to tap into broader opportunities and strengthen relationships with large clients.

In a surprising twist, Intel has announced that its Foundry division will be producing chips for contract chip maker Tower Semiconductor. This comes after a failed acquisition deal between the two companies due to regulatory issues. However, it seems that Intel and Tower have found a way to collaborate, with Intel now handling the fabrication work for Tower.

Under the new agreement, Intel will manufacture chips for Tower’s customers at its Fab 11X facility in New Mexico. This facility is known for its advanced manufacturing capabilities. The deal will provide Tower with additional capacity to meet the growing demand for 300mm advanced analog processing, which Intel has not been able to offer at its own fabs recently. Intel Foundry Services (IFS) will begin producing chips for Tower in 2024, once Tower’s process flow is qualified at its fab. In return, Tower plans to invest up to $300 million in procuring fab tools and other assets for Intel’s Fab 11X.

While specific details about the products IFS will produce for Tower remain undisclosed, it is suggested that power management ICs utilizing Tower’s 65 nm power management BCD process could be involved. Additionally, both companies have hinted at the possibility of utilizing other production nodes at Intel’s Fab 11X, including 65 nm radio frequency silicon-on-insulator (RF SOI), which would be a first for Intel.

Tower Semiconductor’s CEO, Russell Ellwanger, expressed excitement about the collaboration, emphasizing the focus on advanced power management and radio frequency silicon-on-insulator solutions. He sees this partnership as a stepping stone towards multiple unique synergistic solutions with Intel.

For Tower, this deal signifies a significant step towards expansion and catering to a growing clientele in 300 mm technologies. The increased scale resulting from this collaboration allows Tower to tap into broader opportunities and strengthen relationships with large clients. It also sets the stage for future development of production nodes.

On the other hand, Intel benefits from being able to fully utilize its Fab 11X capacity in New Mexico without the need for additional investments in tools and equipment.

Stuart Pann, Intel’s senior vice president and general manager of Intel Foundry Services, expressed enthusiasm about the collaboration, highlighting the long-term vision of Intel Foundry Services to deliver an open system foundry that offers a secure and resilient supply chain. He is pleased that Tower recognizes the unique value that Intel brings to the table and has chosen them to open their 300mm U.S. capacity corridor.

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Background Information

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 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

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).