Intel Buys 2 Million Wafers Per Year for $5.4 Billion 💰 (ft. Dylan from SemiAnalysis)

In the process of growing its foundry offerings, Intel needs more than just high performance. We've been saying a while that Intel needs to be able to provide a complete solution - not just high performance, but analog options, like RF, high voltage, display controller, and different specialty technologies. Today, Intel has made that investment, spending $5.4b to acquire Tower Semiconductor, one of the players in this space. With this acquisition, Intel gets lots of technology and expertise, and is expected to grow the potential margins from the technology. This will comes out through Intel's foundry offerings over the next few years.

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#techtechpotato #intc #tsem

[Veptis]

I read the press report and knew that you would cover the topic well. I really appreciate this kind of coverage in video format.

[almostinfamous]

Photo nerds will know tower or tower jazz . They made and maybe still make a range of sensors for nikon cameras

[innocentiuslacrim]

That last comment on the 2-3 years earnings potential for Intel was very interesting. Thanks.

[knofi]

I really love this old style pullover. I think I had the same ~35 years ago. And thanks a lot for the great interview, as always! :)

[jerrywatson]

Well Intel buys a Israeli foundry that has a customer base long established in the custom fab world. That plus the expansion Intel plans in Israel it would be a good jump for their custom fab offerings. Finding customers at this point in semi-custom work for Intel fab work verses what the industry has developed is not an easy task. With so many the default view is TSMC, Samsung, and the other smaller Fabs for small specialized runs. Let's hope Intel doesn't run them into the ground, but listens to them and their customers. Working to fulfill their needs for a fair price is what will win them mindshare. IMO

[tscanelli]

The thumbnail is actuall cctv footage from the Yokkaichi plant and shows Ian eating 6.5 exabytes of NAND flash.

[RepsUp]

Great info from Dylan and SemiAnalysis

[marktackman]

Good stuff, actually wish it was longer.

[davidfell]

Dylan rocks! That was good analysis. Thank you. For the 5-10 year benefits, I confess I was thinking Intel would want more 2-5 year benefits. But I can appreciate that the pipelines here, especially when trust is factored in, as Dylan said, makes this hard. But I expect that to be the pressure.

[juggernautjunky]

How I imagine the investor call went...

Financial Analysts: How does this deal make (financial) sense for Intel?

Ian Cutress: A $5.4b acquisition is a serious investment...those wafers must be incredibly tasty. Does Intel care to comment?

[ronjatter]

My Dr. never wears a shirt like that. I like it.

[EyesOfByes]

A lot of money is thrown around this year

[spiralout]

Great interview! Nice to feel see some real answers and less pr fluff!

[kevinsmith]

Really cool insights from Dylan. Thank you.

[PRAR]

curious as to optical sensor development from them, especially photographic - also - nice cat

[daghtus]

I hate receiving clothes for Christmas. But this pullover would actually make me glad.

[pweddy]

That Lenode add spot makes me laugh because I have no clue what type of accent you’re even trying to do?!?!?

[jaynorwood]

So, Intel hugely expands capacity in tsm cranking out discrete GPUs, fires up the D1X 1.1 mod3 million sq ft EUV capacity, ramps up their Intel-7 line cranking out Alder Lakes chips of all sizes ... and we're supposed to believe that results in no growth this year? AMD has nothing to match the Alder Lake chips ...

[handlemonium]

Will you be covering or interviewing anyone from Lightmatter photonics?

John Koetsier conducted a very fascinating interview with CEO Nicholas Harris this past August and I've been craving more deep dives ever since!

[BillyLapTop]

I sold all my Intel when they put the "Spy Inside." Anyone remember that?