(Reuters) -Intel Corp is nearing a deal to buy Israeli chip firm Tower Semiconductor for almost $6 billion, the Wall Street Journal reported https://www.wsj.com/articles/intel-near-roughly-6-billion-deal-to-buy-tower-semiconductor-11644876391?mod=latest_headlines on Monday, as the U.S. company ramps up spending to boost its manufacturing operations.
A deal could be unveiled as soon as this week assuming the talks do not fall apart, the report said, citing people familiar with the matter.
Intel and Tower Semiconductor did not immediately respond to Reuters requests for comment.
U.S.-listed shares of Tower Semiconductor, which specializes in making analog integrated circuits, soared nearly 53% in extended trading while Intel was down 0.8%.
Intel said last month it would invest up to $100 billion to build potentially the world’s largest chip-making complex in Ohio, looking to boost capacity as a global shortage of semiconductors affects everything from smartphones to cars.
The move was part of Chief Executive Officer Pat Gelsinger’s strategy to restore Intel’s dominance in chip-making and reduce America’s reliance on Asian manufacturing hubs, which have a tight hold on the market.
(Reporting by Eva Mathews in Bengaluru; Editing by Aditya Soni)
