Following the scuppering of the Intel-Tower takeover deal by China’s regulator, the two companies have agreed a new deal to co-operate on providing foundry services.
Intel will provide foundry services and 300mm manufacturing capacity and Tower will use Intel’s fab in New Mexico.
Tower will invest up to $300 million to acquire and own equipment and other fixed assets to be 
installed in the New Mexico facility, providing a new capacity corridor of over 600,000 photo layers per month for Tower’s future growth, enabling capacity to support forecasted customer demand for 300mm advanced analogue processing.
Intel will manufacture Tower’s 65nm power management BCD flows, among other flows at Intel’s Fab 11X in Rio Rancho, New Mexico.
“This collaboration with Intel allows us to fulfill our customers’ demand roadmaps, with a particular focus on advanced power management and RF SOI solutions, with full process flow qualification planned in 2024,” says Tower CEO Russell Ellwanger (pictured), “we see this as a first step towards multiple unique synergistic solutions with Intel.”
In Q2, Intel’s foundry business reported revenue of $232 million, up from $57 million in Q2 2022.
