TSEM - Intel axes Tower Semiconductor acquisition after not getting China nod

2023-08-16 03:40:42 ET

Intel ( NASDAQ: INTC ) and Tower Semiconductor ( NASDAQ: TSEM ) mutually agreed to terminate the proposed acquisition of Tower as they were unable to get the required regulatory approvals in a timely manner.

?Intel ( INTC ) will pay a termination fee of $353M to Tower ( TSEM ).

"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," said Intel ( INTC ) CEO Pat Gelsinger. "We are executing well on our roadmap to regain transistor performance and power performance leadership by 2025."

Intel's ( INTC ) foundry unit's revenue had increased over 300% Y/Y in Q2.

The company also highlighted its recent deals with Synopsys ( SNPS ) and U.S. Department of Defense, as well as a multigeneration agreement with Arm ( ARMHF ).

The termination of the Tower ( TSEM ) was expected, after the companies failed to win Chinese approval before the deadline expired, which was the main obstacle to completing the deal.

More on Intel, Tower Semiconductor

• Intel expected to walk from Tower Semi after not winning China approval - report
• Synopsys, Intel IP deal 'bodes well' for second-half backlog, Needham says
• Tower Semiconductor: Tough Current Market Climate, But Long Term Remains Appealing
• Intel's Comeback Could Be Epic (Rating Upgrade)
• Intel Stock: Recovery Priced In, But Challenges Lie Ahead

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