Semiconductor fab investments are one thing of a development proper now, with Intel spearheading the transfer towards a extra wafer-filled future. The corporate is setting as much as barricade itself in as a superpower amongst rivals with a $5.4 billion funding to amass Tower Semiconductor.
The deal would put Intel in a supremely defensible place, and the corporate says it’s going to considerably advance its IDM 2.0 technique.
“Tower’s specialty know-how portfolio, geographic attain, deep buyer relationships and services-first operations will assist scale Intel’s foundry companies and advance our purpose of changing into a serious supplier of foundry capability globally,” Intel CEO Pat Gelsinger mentioned.
“This deal will allow Intel to supply a compelling breadth of modern nodes and differentiated specialty applied sciences on mature nodes – unlocking new alternatives for present and future clients in an period of unprecedented demand for semiconductors.”
Intel’s Tower acquisition is one thing of an influence partnership. Not solely will it give the corporate entry to Tower’s experience in specialty applied sciences, it’s going to additionally up the variety of fabs it presently has entry to from 15 to 22, bringing seven Tower fabs situated throughout Israel, Italy, Japan and the USA into the fold. These embrace fabs with 6-, 8-, and 12-inch silicon wafer manufacturing capabilities.
“Along with Intel, we’ll drive new and significant progress alternatives and provide even higher worth to our clients via a full suite of know-how options and nodes and a significantly expanded international manufacturing footprint,” says CEO of Tower, Russell Ellwanger.
“We stay up for being an integral a part of Intel’s foundry providing.”
This comes alongside a gradual stream of semiconductor investments from the boys in blue, together with the corporate’s current announcement that it will quickly be spending $20B on a bunch of Ohio chip factories. And Intel is not stopping there.
Final week we noticed Intel planning to be a part of the RISC-V, via which the corporate’s funding of $1 billion will doubtless make waves throughout the collaborative processor innovation scape.
There was some hypothesis that companies would overcompensate after the current chip shortages, however the hope a minimum of is that we should not be caught out once more, come one other wave of pandemic-fueled chip shortages.