- Tower will provide funds to build up Intel’s facilities
- This collaboration is a small victory for Intel’s CEO
Intel has collaborated with Tower Semiconductor. According to the deal, Tower will invest $300 million in equipment at Intel’s New Mexico campus.
In August, they planned an acquisition, which got abandoned due to regulatory obstacles, specifically the failure to obtain approval from Chinese antitrust enforcers. The acquisition aimed to strengthen Intel’s capabilities in manufacturing chips by utilizing Tower’s expertise.
This partnership has already avoided the competition it may have faced after the merger.
Tower will be contributing funds to build up Intel’s facilities for chip manufacturing, a move made possible by an earlier $353 million break fee paid by Intel to Tower when the merger fell through.
This collaboration is a small victory for Intel’s CEO, Pat Gelsinger. Now, this partnership will allow Intel to get benefits from Tower without facing any hurdles.
This initiative has come out as a strategic move for Intel, which is aiming to expand its chip-manufacturing capabilities and remain competitive in the industry.