Earlier last year, Intel announced that it would now acquire Israel-based semiconductor manufacturing company Tower Semiconductor. More than a year after this announcement, with a new announcement, Intel announced that the acquisition could not be completed. It was reported that the reason why the purchase did not take place was that China did not approve the transaction.China barrier to Intel
In a press release, Intel said the two companies “mutually agreed” not to continue the deal. Intel previously announced in February 2022 that it would acquire Tower Semiconductor for $5.4 billion. This acquisition would make a significant contribution to Intel’s semiconductor manufacturing capacity.
In today’s press release, it was stated that Intel was unable to close the deal due to its failure to obtain the regulatory approvals required under the merger agreement in a timely manner. While Intel did not provide any details, Reuters reported that the Chinese regulator has not approved the acquisition of Intel and Tower Semiconductor. It seems that Intel and Tower Semiconductor did not want to extend the acquisition process either. As a result, Intel has to pay Tower Semiconductor a termination fee of $353 million.“To regain transistor performance and power performance leadership by 2025, we are well implementing our roadmap, gaining momentum with our customers and the wider ecosystem, and delivering the geographically diverse and flexible manufacturing footprint the world needs,” Intel CEO Pat Gelsinger said in a press release. We invest for Our respect for Tower has grown even more in this process and we will continue to look for opportunities to work together in the future.” said. Intel announced in the past months that it will establish new production facilities in various parts of Europe and in Israel.
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