TSEM - Tower Semiconductor gains as Intel CEO meets with Chinese officials

2023-04-11 14:34:57 ET

Tower Semiconductor ( NASDAQ: TSEM ), which agreed to a $5.2 billion sale to Intel ( NASDAQ: INTC ) last February, rose 3.4% after Intel CEO Pat Gelsinger met with a Chinese official to discuss the state of the industry.

In a statement , China's Ministry of Commerce said Minister Wang Wentao talked with Intel ( INTC ) CEO Pat Gelsinger about security and the stability of chip supply.

Investors have been waiting for China's antitrust approval for the Tower Semi ( TSEM ) deal after the $53 a share deal was announced last February. The Intel CEO meeting also follows a WSJ report a week ago tha t Chinese regulators have recently slowed down merger reviews in a number of proposed U.S. deals, including the Tower Semi transaction.

Separately on Tuesday Dealreporter said that the Intel ( INTC ) CEO is expected to be meet with China's economic regulator, the National Development and Reform Commission and the Ministry of Information Technology. It's not clear if the Intel boss was going to meet with the minister of the State Administration for Market Regulation, the regulator who is expected to decide on the Tower Semi ( TSEM ) deal.

SAMR's review of the deal was suspended in mid-December , according to Dealreporter, and has yet to resume.

Intel ( INTC ) reiterated last month Tower Semi ( TSEM ) deal may close in the first half of 2023 pending regulator approval. Intel is scheduled to report Q1 results on April 27.

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