Intel is reportedly acquiring Israeli contract chip manufacturer Tower Semiconductor for $6 billion.

According to a report in the Wall Street Journal, citing people familiar with the matter, a deal could be unveiled as soon as this week, “assuming the talks don’t fall apart”.

Tower Semiconductor develops chips for customers that don’t have their own factories, at multiple factories in Israel, Italy and the US.

It competes with Taiwan Semiconductor Manufacturing, a foundry that Intel is using for some of its own manufacturing.

The Intel plan is being seen as to make more chips for other companies, the report said late on Monday.

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Last year, Intel explored acquiring GlobalFoundries for nearly $30 billion, but the Abu Dhabi investment fund that owns it opted to take the company public instead.

Intel reported its highest quarterly and yearly revenue ever, at $19.5 billion and $74.7 billion, respectively, for the quarter that ended December 31, 2021.

For its first quarter of 2022, the company expects revenue of approximately $18.3 billion.

Intel in Q4 exceeded top-line quarterly guidance by over $1 billion and delivered the best quarterly and full-year revenue in the company’s history.

Intel CEO Pat Gelsinger also discussed the chip shortage, particularly as it impacts laptops. He has suggested that the chip shortage wouldn’t end until at least 2023.

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