An Update On The Intel-Tower Deal And Organic Growth Of Foundry Businesses


  • Eleven months after the deal for Intel to acquire Tower was announced, an important regulatory hurdle remains to be overcome, namely in China.
  • In this case, despite all the geopolitical tensions and semiconductor-related sanctions, there is a glimmer of hope.
  • For this matter, I base myself on differentiated products which are needed by China as the world’s largest semis market and which do not necessarily compete with the more commoditized products manufactured there.
  • Still, in the worst-case scenario that the deal does not go through, both companies can rely on organic revenue growth to make progress in their foundry services.
  • Adopting a cautionary stance due to grim industry-level forecasts for 2023, I have Hold positions for both stocks despite being undervalued with respect to the sector.

technician with wafer


When I last covered Tower Semiconductor (NASDAQ:TSEM) back in June last year, Intel (NASDAQ:INTC) had made a $5.4 billion deal for the acquisition of the Israeli company. I was bullish on the merger due to the


Table Built Using Corporate Data and information from (


Intel Corporate News (


Comparison of Metrics (

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing.

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