Intel to buy Tower Semiconductor for $5.4 billion
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Patrick Gelsinger is the chief executive officer at Intel Corp.
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IntelYou have already agreed to the purchase Tower SemiconductorThe company was purchased for $5.4 million announcedTuesday as the company tries to satisfy the growing demand for computer chips
Premarket trading saw Intel shares rise more than 1 percent. Tower Semiconductor’s shares increased by 36%
Intel will gain an advantage in special technologies such as industrial sensors and radio frequency, in which Tower Semiconductor operates. Intel stated that Tower’s current production facilities were “geographically complimentary,” and have a presence both in the U.S.A. and Asia.
This is a continuation from CEO Pat Gelsinger’s strategy to make large investments in production.
Intel is working hard to satisfy the huge global demand for chips. This has led to an inexorable shortage. up to $100 billion investment in what could become the world’s largest chip production complexOhio
He said, “First, let’s invest to catch up.” during the company’s Q4 earnings call in January. He added, “We’re behind in capacity. You know, we would lust for some free capacity today.” Gelsinger assumed the CEO role one year ago.
Intel will pay $53 per Share, which is higher than the closing price of $33.13 Monday. The deal is expected to close within 12 months.
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