Intel and Tower ink major foundry deal, $300M investment after Intel cancels its $5.4B Tower acquisition

Intel will provide foundry services and 300mm manufacturing capacity to the Tower. Tower will invest up to $300 million in Intel’s New Mexico plant. The deal will give Tower a new capacity corridor of “over 600,000 photo layers per month”. Intel will be manufacturing Tower’s 65-nanometer power management BCD (bipolar-CMOS-DMOS) flows. Tower owns manufacturing facilities in Israel, the U.S., Japan, and soon in Italy. The deal is seen as a way for Intel to continue its plan to expand its foundry services business, even though the Tower acquisition fell through. By Coshorts

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