Intel Terminates $5.4 Billion , Tower Semiconductor Acquisition.
On Aug.
16, Intel announced that it will no longer be buying the Israeli chipmaker, CNBC reports.
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The deal was scrapped "due to the inability to obtain in a timely manner the regulatory approvals required under the merger agreement," Intel said.
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Chinese authorities reportedly did not approve the deal.
Tower Semiconductor also issued a statement.
After careful consideration and thorough discussions and having received no indications regarding certain required regulatory approval, both parties have agreed to terminate their merger agreement having passed the August 15, 2023, outside date, Tower Semiconductor, via statement.
A $353 million termination fee will be paid to Tower Semiconductor.
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The failed deal comes as Intel has lost its lead in the field over the years, CNBC reports.
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TSMC and Samsung are two of the biggest names in chipmaking currently, and the deal would have helped Intel regain a foothold.
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TSMC and Samsung are two of the biggest names in chipmaking currently, and the deal would have helped Intel regain a foothold.
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The development comes as the U.S. and China continue to compete over semiconductor manufacturing.
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The U.S. views Intel as crucial in regaining a prominent place within semiconductor manufacturing, CNBC reports.
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Previously, America has issued restrictions on exports in an attempt to quell China's semiconductor technology.
Similarly, Beijing has barred various Chinese entities from purchasing products from Micron in the U.S
