TEL AVIV (Archyde.com) – Intel Inc and Tower Semiconductor said on Tuesday that Intel will buy the Israeli chipmaker for $5.4 billion, giving Intel access to more specialized products and positioning itself to benefit from increased demand for semiconductors.
Intel will pay $53 a share in Tower, which makes chips for cars, medical sensors and energy management, compared to the Nasdaq market closing price on Monday of $33.13.
Tower shares in Tel Aviv jumped 40 percent on Tuesday. The stock was up 48% in following-hours trading on the Nasdaq on Monday following news of a potential deal surfaced.
The deal cements Intel’s presence in a arena dominated by Taiwan’s TSMC, the world’s largest chip maker, at a time when a global shortage of semiconductors has disrupted production of everything from smartphones to cars.
