A $5.4 billion acquisition of Israeli chip manufacturer by Intel has been called off
A $5.4 billion acquisition of Israeli chip manufacturer by Intel has been called off after China failed to sign off on the deal amid rising tensions with the United States.
Intel Corporation has called off its $5.4 billion acquisition of Israeli chipmaker Tower Semiconductor after China failed to approve the deal. The deal was announced in May 2022 and was expected to close in the second half of 2023.
Intel said in a statement that it was “disappointed” that the deal was not approved by China. The company said that it had worked with the Chinese government for months to try to secure approval, but that the government had not been able to provide the necessary clearances.
Intel’s decision to call off the deal is a setback for the company’s efforts to expand its chip manufacturing capacity. Tower Semiconductor is a leading supplier of specialty chips, and its acquisition would have given Intel a significant boost in its ability to produce chips for a variety of applications.
The failure of the deal is also a sign of the growing tensions between the United States and China. China has been reluctant to approve deals that it sees as giving US companies access to sensitive technology. The deal between Intel and Tower Semiconductor was likely seen as a security risk by the Chinese government.
The failure of the deal is a reminder of the challenges that companies face when they try to do business in China. The Chinese government has a history of intervening in deals that it sees as being against its interests. This can make it difficult for foreign companies to operate in China.
It remains to be seen what Intel will do next. The company could try to find another chipmaker to acquire, or it could focus on expanding its own manufacturing capacity. However, the failure of the Tower Semiconductor deal is a setback for Intel’s plans to become a major player in the global chip market.
Source : APnews
