Notifications Bell

Intel to purchase Tower Semiconductors

Intel to purchase Tower Semiconductors

Intel is expanding its manufacturing capabilities by purchasing Tower Semiconductors

Intel announced today that it struck a $5.4 billion deal with the Israeli chip company. The tech giant will pay $53 per share in cash for Tower, a 60% premium to Monday’s close.

The deal is part of Intel’s manufacturing capacity strategy, designating up to $28 billion for 2022 back in October. It recently revealed that it would spend more than $20 billion to build a mega manufacturing facility in Ohio and $20 billion for sites in Arizona. These efforts and spending were met with concern by market experts because the spending affects the company’s gross margins.

According to Intel, the acquisition will immediately lift its adjusted earnings per share upon closing, and it will be funded with cash from the balance sheet.

At the moment of writing, Intel’s stock price was trading 1.07% higher.

Sources: marketwatch.com, wsj.com

This information prepared by za.capex.com is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.

This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.

You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.

This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com

JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.