Intel and Tower Semiconductor deal

Intel Corp. has announced plans to acquire Israeli computer chipmaker Tower Semiconductor for about $5.4 billion.

According to a press release issued by the US company on Tuesday, the acquisition is aimed at expanding Intel's manufacturing capacity and technology portfolio amid strong industry demand.

"Tower's portfolio of specialized technologies, geographic reach, close customer relationships and service-oriented operations will help expand Intel's chip manufacturing capabilities and move us closer to our goal of becoming the world's largest supplier of them," Intel CEO Pat Gelsinger said.

However, Intel expects the deal to be fully completed within 12 months.

Founded in 1968, Intel manufactures electronic devices and computer components, including microprocessors.

It is worth noting that since last year, the world has been facing a shortage of semiconductors due to a surge in demand for these products as mobile communications in many countries shifted to fifth generation systems. With the pandemic and the expansion of remote working schemes, the production of personal computers and gaming consoles has also increased.