Intel, Tower Semi strike $300m New Mexico chip deal

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Intel, Tower Semi strike $300m New Mexico chip deal
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Meanwhile, Arm suffers IPO financial muscle loss with low valuation

Arm IPO aspirations fall far short of expectations

Arm Holding's impending IPO is likely to garner a much smaller valuation than expected, according to a regulatory filing Tuesday.Arm will offer up 95,500,000 shares at between $47 and $51 a piece, raising upwards of $4.87 billion in the process. Softbank, which acquired the British chip designer in 2016 for the sum of $32 billion, will retain an 89.9-90.6 percent stake in the company, putting the upper end of Arm's valuation at $52 billion. That's far less than the $64 billion Softbank valued the company at when itThe filing reveals that AMD, Apple, Cadence, Google, Intel, MediaTek, Nvidia, Samsung Electronics, Synopsys, and TSMC are expected to collectively purchase $735 million, or 14.4-15.6 million shares.

"If there is a potential customer who comes to Intel and is using their Intel 16, or Intel 3, or 18A [process nodes], and they also want some other specialty material or legacy nodes, they could bring it over from another foundry — say Tower or someone else — and then Intel can put it together through their chiplets," Gupta said.

The selection of Rio Rancho as the site for Intel's Tower collab would seem to reinforce this idea. In early 2021, not long after Pat Gelsinger ousted former chief executive Bob Swan, Intel

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