Intel is reportedly withdrawing from a production agreement to manufacture 300mm wafers for Tower Semiconductor at its New Mexico facility. The parties originally signed the deal in September 2023.
The manufacturing arrangement was established shortly after Intel’s proposed $5.4 billion acquisition of the Israeli chipmaker failed to secure regulatory approval in China. Tower Semiconductor had planned to invest $300 million in equipment for the Intel factory.
The two companies have now entered mediation to resolve the dispute. Production may be rerouted to Intel’s Fab7 plant in Japan, where the manufacturing processes were first certified.