TSEM - Tower Semiconductor seesaws amid report on China review of Intel deal

2023-06-09 11:28:54 ET

Tower Semiconductor ( NASDAQ: TSEM ) rose as much as 2.4% and has pared its gain to 1% amid a report about China's antitrust regulator's review of Intel's ( NASDAQ: INTC ) planned purchase.

While there appears to be some progress made with China's antitrust authority, the deal may depend on progess on the U.S.-China relationship improving after the U.S. export control measures, according to a Dealreporter item, that cited sources familiar.

In late May, China's State Administration for Market Regulation asked the parties to submit additional materials, according to the report. An external economic review of the deal may be close to being completed.

The latest update comes after the Intel CFO made some comments that referenced the deal at a conference last Wednesday that some traders believed weren't as bullish as previous management remarks. An August 15 deal termination deadline is also approaching.

"If, for reasons out of our control, that doesn't happen, though I think we have all the elements and Pat has done a good job shifting that team's focus to be more customer oriented in a way that we can be successful regardless," Intel CFO David Zinsner said at a TD Cowen conference last Wednesday in response to a question about the Tower Semi ( TSEM ) deal.

The Intel CFO comments come after Intel CEO Pat Gelsinger said in late April that the semiconductor giant was making "progress" with Chinese regulators as far as its planned $5.4 billion acquisition of Tower Semi after meetings in China.

Intel ( INTC ) fell 2% in trading on Friday.

More on Tower Semi/Intel

• Tower Semiconductor: Great Company, But If The Deal Doesn't Happen, Slightly Expensive
• T ower Semiconductor gains amid report Intel met with China antitrust regulator
• Silicon Motion, Tower Semiconductor fall on report of slowdown in China deal reviews

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