Intel Working to Buy Tower Semiconductor For $6 Billion

Intel is preparing to purchase Tower Semiconductor for $6 billion, the latest move in the company’s attempt to regain its standing in the industry.

Intel was once the king of the semiconductor industry, but has been eclipsed by AMD and, especially, TSMC. TSMC has become the world’s largest chipmaker, and manufacturers semiconductors for Nvidia, Qualcomm, Samsung, Google, and Apple. Apple, in particular, is a sore point for Intel, as the Cupertino company opted to ditch Intel in favor of its own TSMC-manufactured chips.

In its latest effort to reclaim the top spot, Intel is looking to buy Israeli firm Tower Semiconductor, according to Reuters. It’s believed Intel is interested in the company as a way of improving its contract semiconductor manufacturing. While Intel is known primarily for its own chips, the company wants to expand its contract manufacturing operations, offering companies an alternative to dependence on Asia. CEO Pat Gelsinger has even said he wants to regain Apple as a customer, manufacturing its M1 chips instead of TSMC.

Although neither company would confirm talks, Reuters’ sources say an official announcement could come as early as this week.

**An earlier version of this story mistakenly cited the deal at $5 billion.