Intel, Tower make New Mexico foundry deal

News | September 5, 2023

By Peter Clarke

foundry silicon wafer Materials & processes

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Intel Foundry Services (IFS) and specialist foundry Tower Semiconductor Ltd. (Migdal Haemek, Israel) have announced a deal whereby Intel will provide 300mm wafer manufacturing capacity to Tower out of its wafer fab in New Mexico.

Tower CEO Russell Ellwanger, said the arrangement could be the first of several such deals between the companies.

Intel and Tower had agreed to a takeover but that deal was recently cancelled due to a lack of Chinese regulatory approval (see Intel drops Tower acquisition).

Under the just-announced agreement Tower will utilize Intel’s advanced manufacturing facility in New Mexico. Tower will invest up to US$300 million to acquire and own equipment and other fixed assets to be installed in the New Mexico facility, and obtain a manufacturing capacity of more than 600,000 photolithographic layers per month. Intel will manufacture Tower’s 65nm BCD (bipolar-CMOS-DMOS) flows, among other flows at Intel’s Fab 11X in Rio Rancho, New Mexico.

Stuart Pann, Intel senior vice president and general manager of Intel Foundry Services, said, “We launched Intel Foundry Services with a long-term view of delivering the world’s first open system foundry that brings together a secure, sustainable, and resilient supply chain with the best of Intel and our ecosystem. We’re thrilled that Tower sees the unique value we provide and chose us to open their 300mm U.S. capacity corridor.”

Tower CEO Russell Ellwanger said, “As we look to the future, our primary focus is to expand our customer partnerships through high-scale manufacturing of leading-edge technology solutions. This collaboration with Intel allows us to fulfil our customers’ demand roadmaps, with a particular focus on advanced power management and radio frequency silicon on insulator (RFSOI) solutions, with full process flow qualification planned in 2024. We see this as a first step towards multiple unique synergistic solutions with Intel.”