According to the reports, Intel Corp plans to buy Israeli firm Tower Semiconductor for $6 billion, as the US giant looks to advance its strategy of contract manufacturing chips for other businesses. The deal will be unveiled this week.

The latent purchase would excavate Intel's presence in a space dominated by Taiwan-based TSMC, the world's largest contract chipmaker. It also comes at a time when the global semiconductor shortage has hindered the production of everything from smartphones to cars.

Reports suggests that Tower Semiconductor, whose U.S. shares rushed 53 percent in prolonged trading. Company had a market capitalization of $3.6 billion as of last close. It specializes in analog chips used in the automotive, mobile, medical and aerospace industries.

The US chipmaker had said last month that, it would invest up to $100 billion to build potentially the world's largest chip-making complex in Ohio. Last month, the company had said, it would invest more than $20 billion in two new chip-making plants in Ohio, as it looks to boost its production capacity amid a global shortage of semiconductors that are used in everything from smartphones to cars. The move is aimed at restoring Intel's dominance in chip-making and reducing America's reliance on Asian manufacturing hubs.

Intel was also looking to buy GlobalFoundries for about $30 billion, but the chipmaker went public a few months later, as per the reports.

Chipmaking is expensive and difficult, so most companies either design or produce. Intel has opened up its factories to compete with semiconductor designers to spread costs. Intel shares were up 0.4 percent after the Tower Semiconductor deal.