(WSJ) Shares of Tower Semiconductor Ltd rose by 49% on Tuesday after reports emerged that Intel was closing a $6 billion acquisition deal.
The deal, which is reportedly closing as soon as this week, represents a huge premium to Tower, which currently has a market value of about $3.6 billion.
The move by Intel is part of its ambitious plans to boost chip production, with the company initially having outlined plans of at least a $20 billion manufacturing facility in Ohio. Intel has already pledged more than $100 billion of chip investments over the past year.
The deal comes even as Intel plans to debut its self-driving Mobileye unit in public markets, valuing the company at upwards of $50 billion.
TSEM: TLV is currently up +40.05%, INTC: NASDAQ is up +1.43% on premarket.
