Jiwei network news, on February 15, local time, according to foreign media semiwiki. reported that Intel announced the acquisition of Israel's Tower Semiconductor company (Tower Semiconductor) for $5.4 billion. This equates to $53 per share. But the company's last deal was $33 per share, with a premium of up to 60 percent.
According to the report, Gaota Semiconductor has gained more Chinese business and military business. These are all needed to support Intel's strategic direction. Essentially, the reason for the premium may be that the deal is more than one bird with one stone.
On the conference call, some analysts appeared to be negative about the acquisition because of The Tower Semiconductor's lower profit margins. Most companies acquired by Intel have lower profit margins, and it is not easy to achieve higher profit margins in the foundry field dominated by TSMC.
The report pointed out that Intel's acquisition of the company was not for profit margins or financial situation, and is obviously complementary to Intel's technology under its current positioning as a foundry. If Tower Semiconductor can help Intel become a more capable foundry, the acquisition price alone will be worth it.
In this acquisition, it would not come as a surprise if China scrutinized tower semiconductors. China has been watching some Israeli technology companies because it is concerned about technological isolation from the United States and restrictions on foreign investment/acquisitions by the Committee on Foreign Investment in the United States (CFIUS).
The very high premium in the acquisition could also be a sign of a behind-the-scenes bidding battle, or a desire to avoid others, such as Chinese companies, stepping in after the deal is announced with bids that outperform Intel.
(Proofreading/Ukyan)