With Tower acquisition, Intel will take over industry's ninth largest foundry

February 15, 2022 -- Intel announced plans to acquire Tower Semiconductor for $5.4 billion as part of efforts to become a major provider of foundry services and capacity. Intel describes the deal as highly complementary, bringing together its leading-edge nodes and scale manufacturing with Tower’s specialty technologies and customer-first approach to delivering technology and manufacturing capabilities.

Based on data compiled for Knometa’s new Global Wafer Capacity 2022 report, Tower was industry’s ninth largest foundry at the end of 2021 in terms of installed capacity. Tower has four wholly owned and three majority owned fab sites around the world. Tower also has a partnership with STMicroelectronics to share the cleanroom space in a new 300mm fab ST is opening later this year in Italy.

Tower’s wholly owned fabs include 150mm and 200mm fabs in Israel, a 200mm fab in Newport Beach, California, originally known as Jazz Semiconductor, and a 200mm fab in San Antonio, Texas, acquired from Maxim Integrated in 2016.

Tower's wholly owned fabs

Fab Name and Location	Wafer	Products	Capacity
Fab 1 – Migdal Haemek, Israel	150mm	Foundry for CIS, MCUs, analog, RF, and mixed-signal ICs, discretes, sensors	20,000 wpm
Fab 2 – Migdal Haemek, Israel	200mm	Foundry for CMOS logic, CIS, MCUs, power ICs, power discretes, RF analog, sensors	43,000 wpm
Fab 3 – Newport Beach, California, USA	200mm	Foundry for analog, mixed-signal, RF, high voltage ICs, sensors, silicon photonics	24,000 wpm
Fab 9 – San Antonio, Texas, USA	200mm	Foundry for power ICs and discretes, RF analog	30,000 wpm

Source: Knometa Research, Global Wafer Capacity 2022

In 2014, Tower became majority owner of three former Panasonic fab sites in Japan. Panasonic was looking to exit the semiconductor business and one step toward that goal was partnering with Tower to jointly own and operate its 200mm and 300mm fabs in Japan. In September 2020, Nuvoton acquired Panasonic’s chip business, including the 49% ownership positions in the joint venture fab operations now known as Tower Partners Semiconductor Co. (TPSCo).

TPSCo fabs (owned 51% by Tower, 49% by Nuvoton)

Fab Name and Location	Wafer	Products	Capacity
Fab 5 – Tonami, Toyama, Japan	200mm	Foundry for analog, power discretes, NV memory, CCD	51,000 wpm
Fab 6 – Arai, Niigata, Japan	200mm	Foundry for analog ICs, CIS	14,000 wpm
Fab 7 – Uozu, Toyama, Japan	300mm	Foundry for analog, logic, CIS, RF analog, power mgmt	20,000 wpm

Source: Knometa Research, Global Wafer Capacity 2022

STMicroelectronics has been building a new 300mm fab at its site in Agrate Brianza, Italy, since 2020. Seeking to accelerate its production ramp, ST made a deal with Tower in June 2021 to utilize up to one-third of the fab’s capacity. The Agrate R3 fab is currently being equipped and operations are scheduled to begin in the fourth quarter.

ST & Tower JV fab (Opening in 2022, Tower to get 1/3 of capacity)

Fab Name and Location	Wafer	Products	Capacity
Agrate R3 – Agrate Brianza, Italy	300mm	Mixed-signal ICs, IGBTs, MOSFETs, RF, foundry	32,000 wpm (max capacity)

Source: Knometa Research, Global Wafer Capacity 2022

Intel expects to complete the Tower acquisition in about 12 months with an all-cash transaction. Upon closing, Tower will be fully integrated into the Intel Foundry Services business.

The Global Wafer Capacity 2022 report is available for purchase here.