Intel Foundry Services to Produce Chips for Tower Semiconductor

Intel
(Image credit: Intel)

When Intel and Tower Semiconductor terminated a merger agreement in August, the two companies said they would find a way to collaborate going forward. Well, the two companies announced on Tuesday that Intel Foundry Services would produce chips for Tower. 

Under the terms of the deal, Tower commits to investing as much as $300 million to purchase wafer fab tools and other 'fixed assets' that will be installed at Intel's Fab 11X in Rio Rancho, New Mexico. In exchange, Intel will provide a "capacity corridor" of more than 600,000 photo layers monthly to accommodate Tower's anticipated expansion. 

Tower's 65nm BCD technology provides clients with enhanced power efficiency, reduced die size, and cost savings due to its top-tier Rdson performance metric. The expanded capacity from this deal will allow Tower to tackle bigger projects using current technologies and strengthen collaborations with top-tier industry clients, paving the way for robust future technology blueprints.

Anton Shilov
Contributing Writer

Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.