Intel CEO Predicts ‘Very Smooth’ Regulatory OK for $5.4B Tower Buy
Projecting that Intel’s proposed Tower Semiconductor buy for $5.4 billion will take about a year to complete allows the parties “adequate time to go through the various regulatory processes and approvals,” said Intel CEO Pat Gelsinger on a Tuesday “business…
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update” call with analysts. “We do expect, given the highly complementary nature of the Tower assets versus the Intel assets, that there will be a very smooth process,” he said. “But regulatory approvals do take some amount of time.” Intel and Tower anticipate approvals “across the various geographies” in which they operate, including China, he said. Gelsinger said his “expectation” is to “fully merge” Intel Foundry Services and Tower “into a single foundry business for Intel going forward,” while leveraging Tower’s management expertise in running a global foundry for three decades. When IFS was launched nearly a year ago, customers asked if specialty technologies and mature modes could be added “to our portfolio,” said IFS President Randhir Thakur. With Tower specializing in those businesses, and soon coming under Intel’s control, “we can honor that request,” he said. Announcement of the proposed transaction sent Tower's stock soaring throughout the day Tuesday before closing 42.1% higher at $47.07. Intel finished the day up 1.8% to $48.44.