Intel to buy Israel’s Tower semiconductor for $5.4 billion

Intel to buy Israel’s Tower semiconductor for $5.4 billion

Bloomberg: Intel Corp. agreed to acquire Tower Semiconductor Ltd. for about $5.4 billion, part of Chief Executive Officer Pat Gelsinger’s push into the outsourced chip-manufacturing business.

Intel will pay $53 per share in cash for Tower, according to a statement Tuesday. The companies’ boards have approved the transaction, which they expect will close in about 12 months.

Shares of Tower were up 43% during premarket trading in Tel Aviv on Tuesday. Intel advanced less than 1% in New York.

Gelsinger, who took the CEO job a year ago, is betting he can compete with Taiwan Semiconductor Manufacturing Co. in the chip-foundry market — the contract manufacturing of semiconductors for other companies. His comeback plan for Intel involves modernizing its factories and building new ones aimed at restoring its leadership in chip technology.