Intel gives up – no takeover of Tower Semiconductor

Intel gives up – no takeover of Tower Semiconductor

San Francisco, 8/15/2023

Intel has amicably ended its $5.4 billion acquisition of Chinese chipmaker Tower Semiconductor, allegedly due to a lack of regulatory approval from China.

Intel will now pay a $353 million termination fee to Tower Semiconductor, a contract chipmaker that makes semiconductors for other companies.

In a press release, Intel said it was unable to “obtain timely regulatory approvals required under the merger agreement.”

Bloomberg reported that Chinese regulators were unable to approve the deal before the Aug. 15 deadline.

The termination points to the greater tensions between the US and China, which are particularly affecting corporate deals in the semiconductor sector.

Intel CEO Pat Gelsinger tried to get Chinese regulators’ approval for the tower deal and even visited China at least twice this year.

Gelsinger emphasized that Intel continues to invest in its foundry business, referring to companies that make semiconductors.

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