Intel Corporation (Nasdaq: INTC) has announced the cancellation of its proposed acquisition of Tower Semiconductor (Nasdaq: TSEM). The decision stems from the inability to secure necessary regulatory approvals within the timeframe specified in the merger agreement, which was initially signed on February 15, 2022. As part of the termination agreement, Intel will pay a termination fee of $353 million to Tower Semiconductor.
Intel’s CEO, Pat Gelsinger, emphasized the continued importance of the company’s foundry initiatives within the framework of its IDM 2.0 (Integrated Device Manufacturing) strategy. Gelsinger stated that Intel remains committed to regaining leadership in transistor performance and power efficiency by 2025, while also expanding its global manufacturing footprint.
Stuart Pann, Senior Vice President and General Manager of Intel Foundry Services (IFS), highlighted the progress made by IFS over the past year. The company reported a remarkable 300% year-over-year increase in revenue during the second quarter of 2023. Pann highlighted IFS’s unique positioning as an open system foundry with a comprehensive technology portfolio and manufacturing capabilities extending beyond traditional wafer manufacturing.
Intel’s recent achievements in the semiconductor industry include a collaboration with Synopsys to develop a portfolio of intellectual property on Intel 3 and Intel 18A process nodes. Additionally, Intel secured the first phase of the U.S. Department of Defense’s Rapid Assured Microelectronics Prototypes – Commercial (RAMP-C) program and is actively engaged with five RAMP-C customers on the Intel 18A design. The company also established a multi-generation agreement with Arm to facilitate the creation of low-power compute system-on-chips (SoCs) on the Intel 18A process. Furthermore, a strategic partnership was formed with MediaTek to leverage IFS’s advanced process technologies.
Despite the termination of the acquisition, both Intel and Tower Semiconductor expressed openness to exploring future collaborative opportunities. Intel remains dedicated to propelling its foundry efforts in accordance with the IDM 2.0 strategy, solidifying its position in the competitive semiconductor landscape.