After Intel's Failed Acquisition, Is Tower Semiconductor Stock a Buy?
It was no surprise that Intel (NASDAQ: INTC) had to walk away from its bid to acquire Israel's chip manufacturer Tower Semiconductor (NASDAQ: TSEM). The clock was ticking, and regulators in China were in no hurry to approve the tie-up.
Just a couple weeks after the acquisition termination, though, Intel and Tower announced a different kind of partnership: Tower will utilize an Intel fab in New Mexico to expand production for Tower customers. Does this new information make Tower stock a buy now?
As for the details of this deal, Tower will be investing approximately $300 million into Intel's fab (a factory that makes chips) outside of Albuquerque, New Mexico. Intel calls this fab its "Innovation Hub" and had previously announced a $3.5 billion investment in 2021 to expand its New Mexico facility's capabilities in advanced chip packaging. Intel calls its packaging tech Foveros -- the process of cutting chips from silicon wafers, which then get assembled into computing and other electronic systems. Intel's expansion was slated for completion sometime in 2023.
Source Fool.com
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