Intel notches new foundry arrangement with Tower Semiconductor

Intel Corp.
INTC,
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has struck an agreement with Tower Semiconductor
TSEM,
-1.75%
through which Intel will provide foundry services and 300-millimeter manufacturing capacity, the companies said Tuesday. Tower plans to invest up to $300 million to acquire and own equipment and other assets that will be installed in Intel’s New Mexico manufacturing facility. “This agreement demonstrates the commitment from both Intel and Tower to expand their respective foundry footprints with unparalleled solutions and scaled capabilities,” the companies said in a release. Intel offered an upbeat update on its foundry business last week, as Chief Executive Pat Gelsinger disclosed at an investor conference that the company had a “large customer prepay” for its 18A process technology.