Tower Semiconductor: Intel intends to terminate the wafer manufacturing partnership

K-LinePoet · 2026-03-07T11:32:33+00:00

GaoTa Semiconductor mentioned in a press release that Intel plans to terminate their wafer foundry collaboration, and both parties are currently undergoing mediation. Previously, the two had acquisition negotiations but failed to reach an agreement. GaoTa expects revenue to reach $1.57 billion in 2025 and plans to achieve $412 million in revenue in the first quarter of 2026.

K-LinePoet

2026-03-07 11:32:33

Abstract generation in progress

IT House, February 13 — Tower Semiconductor, a contract chip manufacturing company, announced in a press release on February 11 that Intel intends to terminate their wafer manufacturing partnership. The two are currently in mediation.

Intel previously proposed acquiring Tower, but the deal fell through in August 2023. After that, in September 2023, the two reached an agreement on wafer manufacturing cooperation: Tower will use the cleanroom space at Intel’s Fab 11X in New Mexico to provide 12-inch wafer manufacturing services for Tower’s clients.

Tower stated that the business processes transferred or being transferred to Intel’s wafer factories were initially certified at Tower’s Fab 7 in Japan, and customers are now being redirected to Fab 7.

Tower projected revenue of $1.57 billion in 2025 (IT House note: approximately 10.848 billion RMB at current exchange rates), with Q4 2025 revenue reaching a quarterly high of $440 million. The company expects revenue of around $412 million in Q1 2026 and announced a $270 million investment plan for compound semiconductor equipment.

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