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HomeNewsIntel scraps $5.4 billion acquisition of Tower Semiconductor after regulators fail to...

Intel scraps $5.4 billion acquisition of Tower Semiconductor after regulators fail to approve deal Get hold of US

Signage exterior Intel headquarters in Santa Clara, California, Jan. 30, 2023.

David Paul Morris | Bloomberg | Getty Photographs

Intel on Wednesday terminated its acquisition of Israeli chipmaker Tower Semiconductor, saying it did not safe the required regulatory approval.

The tech big said in a statement it’s scrapping the deliberate deal “as a result of incapability to acquire in a well timed method the regulatory approvals required beneath the merger settlement.”

The U.S. chip big pays a termination payment of $353 million to Tower.

Intel introduced intentions to purchase Tower — a contract chipmaker that manufactures semiconductors for different corporations — in February 2022 for $5.4 billion.

The deal would have given Intel a foothold within the specialty applied sciences on which Tower focuses, like radio frequency and industrial sensors. 

Tower Semiconductor shares have been down 8% round 4:18 a.m. ET.

Reuters, citing folks conversant in the matter, reported on Tuesday that Intel didn’t safe approval for the deal from the Chinese language authorities earlier than the deadline handed. Chinese language authorities haven’t publicly communicated approving the acquisition.

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