Intel calls off $5.4b Tower deal after failing to obtain regulatory approvals
Intel is terminating a $5.4 billion agreement to acquire Israeli chip manufacturer Tower Semiconductor after China failed to sign off on the deal amid deteriorating US-China relations
HONG KONG (AP) — Intel will terminate a $5.4 billion deal to acquire Israeli chip manufacturer Tower Semiconductor after China failed to sign off on the deal amid rising tensions with the United States.
It was a mutual decision between Intel and Tower, the companies said Wednesday. Intel said that the deal was terminated “due to the inability to obtain in a timely manner the regulatory approvals required under the merger agreement.”
Intel Corp. will pay Tower a termination fee of $353 million, the U.S. semiconductor giant said.
The deal required regulatory approval from several regulators worldwide including China, but Chinese regulators did not greenlight the deal by the Aug. 15 transaction deadline, even after Intel CEO Patrick Gelsinger traveled to China last month in a bid to win them over.
