On the heels of Intel’s decision to cancel its acquisition of Tower Semiconductor, the two companies have announced a $300 million partnership.

Intel announced in February that it had struck a deal to purchase the Israeli semiconductor firm before canceling the agreement in mid-August. Intel cited an “inability to obtain in a timely manner the regulatory approvals required under the merger agreement.”

Despite the acquisition being cancelled, the two companies are strengthening their relationship with a $300 million deal that will see Intel provide foundry services to the Israeli firm. Tower will utilize Intel’s New Mexico facility to manufacture its “highly differentiated 65-nanometer power management BCD (bipolar-CMOS-DMOS) flows.”

The announcement is a big win for Intel’s foundry services as the company looks to expand its services to semiconductor firms worldwide.

“We launched Intel Foundry Services with a long-term view of delivering the world’s first open system foundry that brings together a secure, sustainable, and resilient supply chain with the best of Intel and our ecosystem,” said Stuart Pann, Intel senior vice president and general manager of Intel Foundry Services. “We’re thrilled that Tower sees the unique value we provide and chose us to open their 300mm U.S. capacity corridor.”

“We are excited to continue working with Intel,”said Tower CEO Russell Ellwanger. “As we look to the future, our primary focus is to expand our customer partnerships through high-scale manufacturing of leading-edge technology solutions. This collaboration with Intel allows us to fulfill our customers’ demand roadmaps, with a particular focus on advanced power management and radio frequency silicon on insulator (RF SOI) solutions, with full process flow qualification planned in 2024. We see this as a first step towards multiple unique synergistic solutions with Intel.”