According to foreign media, citing people familiar with the matter, Intel (Intel Corp) 's acquisition of Israeli chip company Gaota Semiconductor (Tower Semiconductor) is nearing completion, with a total price of about $6 billion.
Intel is seeking to advance the strategy of manufacturing chips for other companies, and the potential acquisition will deepen Intel's position in global semiconductor contract manufacturing, thereby narrowing the gap with TSMC, the global contract manufacturing leader.
If the talks do not break down, the deal could be announced as early as this week, according to people familiar with the matter.
Shares in Gaota surged more than 50 per cent in after-hours trading on Monday after falling 2 per cent to close at $33.13 in regular trading, with a market capitalization of about $3.6 billion. Intel, on the other hand, rose only 0.27% in after-hours trading.
The chips produced by Gaota Semiconductor are widely used in automotive, consumer products, medical and industrial equipment and other fields. The company has manufacturing plants in Israel, California, Texas and Japan, according to its website.
Intel places heavy bets on contract manufacturing
High Tower Semiconductor is similar to (GlobalFoundries), an American chip contract manufacturer. Intel had previously sought to buy GE Core for about $30 billion, but the latter eventually chose to go public.
Intel CEO Pat Gelsinger unveiled the IDM 2.0 strategy in March last year and plans to return to the foundry business.
According to the estimates of the world's top 10 wafer manufacturers in 2021 completed by Digitimes last month, TSMC firmly occupies the leading position (about 59.5% of the market), followed by Samsung Electronics (8.7%), UMC (7.9%), Grid Core (6.9%) and Tower 9 (1.6%).
Not only mergers and acquisitions, Intel has recently been actively expanding capacity. The company said last month that it would invest as much as $100 billion to build the world's largest chip manufacturing base in Ohio. The move is aimed at restoring Intel's dominant position in chip manufacturing and reducing US dependence on Asian chip manufacturing.
Over the past year or so, a global shortage of semiconductors has hampered the production of everything from smartphones to cars. In the environment of continuous shortage of chips, the major wafer foundry have increased the amount of investment and have put forward rare large-scale production expansion plans.
![Manufacturers' Daily Output Increase Covered Maintenance Reductions, Yet Transaction Recovery Failed to Reverse Plant Inventory Accumulation [SMM Magnesium Weekly Data]](https://imgqn.smm.cn/usercenter/xLlnY20251217171724.jpeg)
