Intel Corporation (NASDAQ:INTC) announced today its intention to acquire Tower Semiconductor, an Israeli chipmaker, for $5.4 billion ($53 per share) in cash. The deal price represents around a 60% premium to Tower Semiconductor's last unaffected trading price of $33.13. The deal, which needs regulatory approval from China, in addition to other jurisdictions, is expected to close in approximately 12 months and is expected by Intel to be immediately accretive to its non-GAAP EPS.

According to Street estimates, Tower Semiconductor is expected to deliver 2021 revenue of $1.5 billion, with gross margins of 22%.