Israeli chip firm Tower Semiconductor Ltd. saw its shares soar after reports that a nearly $6-billion takeover deal with Intel Corp. is close to being made, WSJ reported.
- Sources close to the matter said the agreement could be announced as soon as this week if talks push through, with a hefty premium expected as Tower’s market value was estimated at $3.6 billion.
- California-based Intel in January said it earmarked at least $20 billion for a new chip production facility in Ohio, driving its targets higher with increased demand from digital products and the ongoing chip shortage.
- Intel Chief Executive Pat Gelsinger opened the doors for hosting eight chip factories in its Ohio facility, with the investments possibly reaching up to $100 billion in the next 10 years. It has already committed $100 billion in investments over the past year.
Shares in Tower — which operates manufacturing plants in Israel, California, Texas, and Japan — jumped 49% in after-hours trading on Monday. TSEM is up 41.87%, and INTC is up 1.35% premarket.