Intel Announces a New OEM Agreement with Gaota Semiconductor_News_ALL NEW SEMI (ANSC)

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Intel Announces a New OEM Agreement with Gaota Semiconductor

2023-09-11

Recently, Intel Foundry Services (IFS) announced a new OEM agreement with Tower Semiconductor, an Israeli semiconductor foundry.

According to the agreement, Intel will provide OEM services and 300mm manufacturing capabilities to help High Tower Semiconductor serve its global customers. Gaota Semiconductor will also purchase fixed assets located at Intel's New Mexico factory for approximately $300 million, allowing the two sides to further develop new ways of cooperation.

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Russell Ellwanger, CEO of Gaota Semiconductor, stated that we believe this is the first step towards multiple unique collaborative solutions with Intel. Our collaboration with Intel will enable us to meet customer needs, with a particular focus on advanced power management and RF SOI solutions, and we plan to conduct a complete process certification in 2024.

According to data, in February 2022, Intel announced that it would acquire Israeli semiconductor foundry High Tower Semiconductor for $5.4 billion. On August 16, 2023, Intel stated that due to its failure to obtain timely regulatory approval, Intel and Gaota Semiconductor jointly agreed to terminate the previously disclosed acquisition agreement. To this end, Intel will pay a termination fee of $353 million to Gaota.

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