Processor giant Intel is buying Israeli chip maker Tower Semiconductor. Tower Semiconductor has accepted Intel’s $53 per share cash offer for outstanding shares, according to the official statement. The deal will cost Intel $5.4 billion. The acquisition is expected to be completed within the next 12 months.
Tower Semiconductor, whose shares are traded on the Nasdaq stock exchange, manufactures semiconductor components and integrated circuits used in automobiles, consumer devices, medical and industrial equipment. The company has a total of seven production facilities in Israel, Italy, USA and Japan.
Shares rose
Tower Semiconductor’s shares rose 48% after the media coverage of Intel’s interest in the company. The company, which has a market value of approximately 3.6 billion dollars, is the sixth largest semiconductor manufacturer in the world.
Intel had sought to acquire a larger chip maker, GlobalFoundries, last year. However, the company, which is owned by Mubadala Investment Company, one of the wealth funds of the United Arab Emirates, decided to perform an IPO.
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