Intel announced the termination of the acquisition of Tower Semiconductor

Intel has declared the termination of its previously disclosed acquisition agreement with Tower Semiconductor, due to their inability to secure the requisite regulatory approvals in a timely manner. As stipulated by the terms and conditions of their accord, Intel is beholden to remit $353 million to Tower Semiconductor.

“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 Pat Gelsinger, CEO of Intel. “We are executing well on our roadmap to regain transistor performance and power performance leadership by 2025, building momentum with customers and the broader ecosystem and investing to deliver the geographically diverse and resilient manufacturing footprint the world needs. Our respect for Tower has only grown through this process, and we will continue to look for opportunities to work together in the future.” ​

Prior reports intimated that Intel’s acquisition of Tower Semiconductor had garnered approval from all regulatory bodies save for the State Administration for Market Regulation (SAMR). Intel initially endeavored to consummate the transaction within a span of 12 months, that is, by mid-February 2023. However, due to the cessation of approvals by the SAMR, the transaction’s deadline was protracted to mid-June and then further deferred to August 15, yet remained unconsummated. During this interlude, Gelsinger made several sojourns to China, endeavoring to persuade the regulatory authorities to sanction the transaction. Yet, within the prevailing Sino-American semiconductor milieu, the deal faced insurmountable challenges in gaining support.

Recently, Gelsinger’s pronouncements have been a source of contention, especially his assertion that Intel is deserving of greater governmental subsidies than its competitors.”