Today's video focuses on Intel (INTC +2.20%), an update on its agreement to acquire Tower Semiconductor (TSEM +3.15%), and how Tower can benefit Intel in its plan to be a leading chip manufacturer. Here are some highlights from the video.
- Tower Semiconductor is a leading foundry for analog semiconductor solutions. Intel has entered a definitive agreement to acquire Tower Semiconductor at $54 per share. It's expected to be an all-cash deal funded by Intel's balance sheet and should close in approximately 12 months.
- Intel will gain additional foundries, as Tower Semiconductor currently operates seven foundries globally -- two in Israel, two in the USA, and three in Japan. Intel will also add new technology and engineers and potentially new customers.
- The acquisition makes perfect sense for Intel's current plan to become a leading semiconductor manufacturer. Intel has recently invested in numerous new foundries in the USA and Europe.
Click the video below for my full thoughts and analysis.
*Stock prices used were the closed market prices of March 4, 2022. The video was published on March 4, 2022.
