Intel said Tuesday it will offer foundry services to Tower Semiconductor less than one month after the $5.4 billion acquisition of Tower fell through.
In the new deal, Intel will offer foundry services and 300mm analog processing to Tower’s customers. Meanwhile, Tower will invest up to $300 million for its equipment and other assets to be used in an Intel facility in New Mexico. The output provides 600,000 photo layers per month for Tower’s growth.
Intel will manufacture Tower’s 65nm power management BCD flows, among others, at Intel’s Fab 11X in Rio Rancho, NM. The 65nm BCD tech offers better power efficiency and die size and lower cost.
“We are excited to continue working with Intel,” said Tower CEO Russell Ellwanger, in a statement. “This collaboration with Intel allows us to fulfill our customers’ demand roadmaps with a particular focus on advanced power management and radio frequency silicon on insulator solutions.” Full process flow qualification is planned for next year.
Intel previously announced plans to spend $3.5 billion to expand operations in New Mexico and equipment at its Rio Rancho campus.
The mammoth deal to buy Tower of Israel came to an end the day after a deadline to receive approval from Chinese authorities passed. Some analysts have blamed trade tensions between the US and China as the main cause of the dissolution.
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