Intel Foundry Services (IFS) and Tower Semiconductor have announced a $300 million agreement to extend their respective foundry footprints. Under this deal, Tower Semiconductor will make use of Intel’s advanced manufacturing facility in New Mexico. The investment will go toward acquiring equipment and other fixed assets, aiming to provide Tower Semiconductor with a new capacity corridor for over 600,000 photo layers per month. This capacity aims to meet the forecasted customer demand for 300mm advanced analog processing.

$300 Million Investment to Boost 300mm Manufacturing Capacity

The significant investment demonstrates both Intel’s and Tower Semiconductor’s commitment to provide unparalleled solutions and scaled capabilities in semiconductor manufacturing. Specifically, Intel will manufacture Tower’s differentiated 65-nanometer power management BCD (bipolar-CMOS-DMOS) flows, among others, at Intel’s Fab 11X in Rio Rancho, New Mexico.

Intel’s Fab 11X in New Mexico to Manufacture Tower Semiconductor’s Products

Intel’s facility will play a critical role in Tower Semiconductor’s future growth strategies, including its focus on advanced power management and radio frequency silicon on insulator (RF SOI) solutions. The collaboration aims for full process flow qualification by 2024 and will enable Tower to serve a larger market, bolstered by its industry-leading technologies.

Long-term Outlook: Comments from Intel and Tower Leadership

Stuart Pann, Intel senior vice president, said, “We’re thrilled that Tower sees the unique value we provide and chose us to open their 300mm U.S. capacity corridor.” On the other side, Tower CEO Russell Ellwanger noted, “We see this as a first step towards multiple unique synergistic solutions with Intel.”

Intel and Tower’s Expanding Foundry Footprints and Capabilities

This partnership offers a glimpse into Intel’s broader strategy, particularly its IDM 2.0 plan, which aims to regain and strengthen technology leadership. Likewise, for Tower Semiconductor, the agreement signifies the next step in scaling its operations, driven by strong market adoption of its advanced technologies. This collaboration will help both companies expand their global factory networks and enable new corridors of manufacturing capacity.

Intel’s strategic moves are already showing positive signs, demonstrated by a more than 300% year-over-year revenue increase in Q2 2023. Furthermore, the company has recently inked an agreement with Synopsys to develop a portfolio of intellectual property on Intel 3 and Intel 18A process nodes. These developments indicate the potential for significant industry impact stemming from the Intel-Tower agreement.

  Intel, New Mexico, semiconductors, Tower Semiconductor, USA