On August 16, 2023, Intel announced that it had reached an agreement with Tower Semiconductor to terminate the previous acquisition agreement due to its inability to obtain the regulatory approval required by the merger agreement in a timely manner. Under the terms of the merger agreement, Intel will pay Highta a $353 million "breakup fee."
Looking back, in February 2022, Intel announced that it planned to acquire Israel's High Tower Semiconductor Company for US$5.4 billion. The news aroused widespread concern at the time. On February 15, Intel and High Tower Semiconductor announced that they had reached a definitive agreement. According to the agreement, Intel will acquire High Tower Semiconductor for US$53 per share in cash, which is a 60% premium over the closing price on the 14th, with a total value of approximately US$5.4 billion.
Intel stated that this acquisition will help advance the company's IDM 2.0 strategy, further expand manufacturing capacity, global layout and technology portfolio to meet unprecedented industry demands. Intel CEO Pat Gelsinger (Pat Gelsinger) has been working to strengthen the chip foundry business, and plans to invest 25 billion to 28 billion US dollars to increase production capacity. In addition, Intel also announced a $20 billion expansion plan in Ohio, and plans to reach a total investment of $100 billion in the next ten years.
As a leading foundry company of special process wafers, Gaota Semiconductor ranks first in the field of analog chip foundry, especially has advantages in the fields of radio frequency, power supply, industrial sensors and high-performance analog circuits, and can support many consumer products. , high-speed, low-power products for industrial facility-grade and automotive electronics applications. In addition to various types of analog IC foundry, Gotower Semiconductor also manufactures discrete devices. In terms of technology nodes, the 0.18 to 0.11 micron process is its main source of revenue, accounting for 61%, followed by the 65nm process, accounting for 18%.
However, Intel had to terminate the acquisition agreement due to delays in regulatory approval. Under the terms of the agreement, Intel will pay Highta a $353 million breakup fee. The decision was a disappointing outcome for both parties, but both said they would continue to pursue other partnership opportunities.
Overall, Intel terminated the acquisition agreement of Tower Semiconductor, which is a disappointing result for both companies. However, both Intel and Hightower will continue to pursue other collaboration opportunities to advance the semiconductor industry.
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