TSEM - Tower Semi falls amid report Biden order on curtailing China investments nearing completion

2023-06-27 13:12:19 ET

Tower Semiconductor ( NASDAQ: TSEM ), which agreed to a $5.2 billion sale to Intel ( NASDAQ: INTC ) last February, dropped 3.6% amid a report that the Biden administration is close to completing an executive order that may cut off some U.S. investments in China.

The Biden administration may complete an executive order that may cut off certain U.S. investments in China as soon as late July, according to a Bloomberg report on Monday, which cited people familiar with the matter. The timing could slip into August. Final details are still being hammered out.

The same story indicated that U.S. Treasury Secretary Janet Yellen was planning to visit Beijing in early July.

Tower Semiconductor ( TSEM ) fell at least partly on concerns that the timing of the executive order may be problematic as an Aug. 15 termination deadline for the TSEM/INTEL deal approaches.

Earlier this month, Dealreporter said that while there appears to be some progress made with China's antitrust authority on TSEM/INTC, the deal may depend on progress on the U.S.-China relationship improving after the U.S. export control measure.

More on Tower Semi/Intel

• Tower Semiconductor: Great Company, But If The Deal Doesn't Happen, Slightly Expensive
• Tower Semiconductor weaker amid comments from Intel at conference
• T ower Semiconductor gains amid report Intel met with China antitrust regulator
• Geopolitical Roundup: Investing In China Is About To Become Harder

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