Intel today expanded its manufacturing empire with a $5.4 billion acquisition of Israel-based foundry operator Tower Semiconductor.

“Tower’s specialty technology portfolio, geographic reach, deep customer relationships, and services first operations will help scale Intel’s foundry services and advance our goal of becoming a major provider of foundry capacity,” Intel CEO Pat Gelsinger said in a statement.

Tower Semiconductor specializes in radio frequency, power, silicon-germanium, and industrial sensors. The company also has extensive intellectual property holdings and well established electronic design automation partnerships.

The acquisition is the latest feather in Intel’s foundry cap and addresses the need for trailing-edge semiconductor capacity commonly used in automotive and industrial applications, GlobalData analyst David Bicknell wrote in a research note.

“Tower Semiconductor will be a useful addition to Intel’s portfolio without the tension and regulatory scrutiny that might have been involved had Intel bought a reluctant GlobalFoundries,” he wrote.

While Intel has poured nearly $50 billion into its newly formed Intel Foundry Services (IFS) division, led by Randhir Thakur, none of the company’s foundry projects will come online until 2024 at the earliest and will primarily address leading-edge semiconductor demand.

The integration of Tower Semiconductor into IFS enables Intel to meet demand for older manufacturing processes and technologies ill suited for Intel’s existing fabs.

The acquisition, which is expected to close about a year from now, won’t have any immediate impact on the ongoing semiconductor shortage, Bicknell noted.

Intel and Tower Semiconductor will continue to operate as separate entities pending the successful close of the acquisition.

The news comes a week after Intel announced a $1 billion initiative to help customers accelerate their development pipelines around IFS.

“It takes a veritable army of software, design services, intellectual properties, electronic design automation tools and flows, and other technologies to implement a complex chip design in silicon,” IFS President Randhir Thakur wrote in a blog post last week. “We are an extension of our customers’ innovation pipeline.”

The initiative also saw Intel embrace the Arm and RISC-V instruction set architectures. While Intel has decades of experience in semiconductor manufacturing most of it is centered around the x86 architecture it pioneered. However, aside from Intel and rival AMD, which reverse-engineered the architecture in the ’80s, few if any chipmakers use it today.

By comparison, Arm is, by an order of magnitude, the most widely deployed architecture, and RISC-V is steadily gaining momentum thanks to its open source foundations.

While the architecture is only now gaining widespread popularity, Intel threw its weight behind the technology last week by joining RISC-V International and partnering with leading RISC-V chipmakers to establish a preliminary product stack.