Intel wants to acquire Tower Semiconductor for 5.3 billion euros (6 billion dollars). This is reported by the Wall Street Journal based on anonymous sources.

Chip giant Intel has set its sights on Tower Semiconductor, an Israeli chip manufacturer. Anonymous sources told the Wall Street Journal that the deal may be announced soon.

Intel is allegedly paying 5.3 billion euros for the Israeli chip manufacturer. Tower Semiconductor has an estimated value of 3.2 billion euros.

Expanding Intel’s Production Capacity

The investment in the Israeli chip producer will allow Intel to expand its operations. Intel has long indicated that it wants to scale up its production capacity, especially now that competition with AMD and Nvidia is increasing. The organization hopes to profile itself as a foundry, which makes processors for external chip suppliers. The chip giant wants to invest no less than 88 billion euros in expanding its capacity in the coming years.

Tower Semiconductor primarily makes processors for the automotive, consumer electronics, medical and industrial equipment industries. The company operates plants in California, Texas, Israel, Italy and Japan.

Tower Semiconductor’s operations are comparable to GlobalFoundries, a chip manufcaturer that Intel tried to acquire last year. Instead of selling to Intel, GlobalFoundries eventually decided to go public.

Tip: ‘Intel wants to buy chipmaker GlobalFoundries for 25 billion euros’