TSEM - Tower Semi falls on report Intel won't expand chip production in China

Tower Semiconductor ( NASDAQ: TSEM ), which is being acquired by Intel ( NASDAQ: INTC ), dropped 1% amid a report that Intel has no plans to expand semiconductor chip production in China.

Intel ( INTC ) shot down some speculation in recent weeks that it was seeking U.S. Commerce Department approval to invest $1.5 billion in a shuttered Chengdu, China plant, according to a Dealreporter item.

Intel ( INTC ) in an email to Dealreporter said the speculation was incorrect and that it hadn't sought such approval and wasn't pursuing a project in China. The chipmaker was said to be pursuing the China production potentially in an attempt to help gain approval for the Tower Semi ( TSEM ) deal.

The news comes after Dealreporter earlier this month said that China's antitrust regulato r had suspended the clock in its review of the Tower Semi ( TSEM ) deal.

The latest story says that deal parties have responded to the China antitrust regulators questions, though it's not known if the the clock has resumed or the parties plan a pull and refile.

Intel ( INTC ) agreed to acquire Tower Semi ( TSEM ) for $53 per share in cash in February.

Intel ( INTC ) is set to report Q4 results on Thursday.

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