Intel Terminates $5.4 Billion Acquisition Of Tower Semiconductor In accordance with the terms of the merger agreement and in connection with its termination, Intel will pay a termination fee of $353 million to Tower, a statement added
By Teena Jose
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Intel on Wednesday terminated its acquisition of Israeli chipmaker Tower Semiconductor, saying it failed to secure the required regulatory approval. In an official statement, the tech giant said it is scrapping the planned deal "due to the inability to obtain in a timely manner the regulatory approvals required under the merger agreement."
It also added that in accordance with the terms of the merger agreement and in connection with its termination, Intel will pay a termination fee of $353 million to Tower.
"Our foundry efforts are critical to unlocking the full potential of IDM 2.0, and we continue to drive forward on all facets of our strategy. We are executing well on our roadmap to regain transistor performance and power performance leadership by2025, building momentum with customers and the broader ecosystem and investing to deliver the geographically diverse and resilient manufacturing footprint the world needs. Our respect for Tower has only grown through this process, and we will continue to look for opportunities to work together in the future," said Pat Gelsinger, CEO, Intel, in the statement.
Reuters, citing people familiar with the matter, reported Tuesday that Intel did not secure approval for the deal from the Chinese authorities before a crucial deadline passed. Chinese authorities have not publicly communicated approving the purchase.
"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 said in a statement Wednesday.
Tower Semiconductor Ltd. is an Israeli company that manufactures integrated circuits using specialty process technologies.
