Intel & Tower Semiconductor Reach Foundry Agreement

Following Intel's acquisition of Tower Semiconductor falling through due to failing to obtain all the necessary regulatory approvals, Intel and Tower today announced a foundry agreement.

As part of the agreement announced this morning, Intel Foundry Services will provide new capacity for Tower at its facility in New Mexico.

The key elements of the foundry agreement amount to:

"Intel Foundry Services (IFS) and Tower Semiconductor (Nasdaq: TSEM), a leading foundry for analog semiconductor solutions, today announced an agreement where Intel will provide foundry services and 300mm manufacturing capacity to help Tower serve its customers globally. Under the agreement, Tower will utilize Intel’s advanced manufacturing facility in New Mexico. Tower will invest up to $300 million to acquire and own equipment and other fixed assets to be installed in the New Mexico facility, providing a new capacity corridor of over 600,000 photo layers per month for Tower’s future growth, enabling capacity to support forecasted customer demand for 300mm advanced analog processing.
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Intel will manufacture Tower’s highly differentiated 65-nanometer power management BCD (bipolar-CMOS-DMOS) flows, among other flows at Intel’s Fab 11X in Rio Rancho, New Mexico."

Those interested in learning more about the Intel/IFS and Tower Semiconductor foundry agreement can read today's press release.