Intel and Hi-Tech Semiconductor Reach New Foundry Agreement
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Update time : 2023-09-07 11:21:14
According to reports, Intel today and Israeli chip foundry Tower Semiconductor reached a new foundry agreement.
According to the agreement, Tower Semiconductor will invest $300 million in Intel's Rio Rancho, New Mexico, plant, the acquisition and access to the plant will be installed to the equipment and other fixed assets. At that time, Hi-Tech Semiconductor will get the factory more than 600,000 monthly photo layer (photo layers) production capacity to meet the Hi-Tech Semiconductor customer demand for the next generation of 300 mm chips.
Russell Ellwanger, CEO of Hi-Tech Semiconductor, commented: "This is the first step towards a variety of unique synergistic solutions with Intel. This collaboration will not only enable us to meet our customers' demand roadmaps, but also has a special focus on advanced power management and RF on Insulator (RF SOI) solutions, with full process qualification planned for 2024.
Meanwhile, the deal will also enhance Intel's foundry capabilities at a time when the company is challenging rivals such as industry leader TSMC.
In 2021, Intel committed to investing $3.5 billion in a New Mexico plant, and a year later announced a $20 billion investment in a chip manufacturing facility in Ohio.
In the past year, Intel foundry services have indeed made great strides. In the second quarter of this year, Intel foundry business revenue of $232 million, an increase of more than 300%. Intel's goal is to become the world's second largest external foundry by 2030.
Before reaching this deal, Intel and Hightower Semiconductor just terminated an acquisition deal. Last February, Intel announced that it would acquire Hightower Semiconductor for $53 per share in cash, in a deal worth about $5.4 billion in total.
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