Intel, Tower terminate $5.4 billion deal over regulatory hurdles

intel,-tower-terminate-$5.4-billion-deal-over-regulatory-hurdles
Intel, Tower terminate $5.4 billion deal over regulatory hurdles

Intel and Israeli contract chipmaker Tower Semiconductor have mutually terminated their proposed $5.4 billion deal due to a lack of timely regulatory approvals. The termination fee of $353 million will be paid by Intel to Tower Semiconductor. The companies did not provide specific details about the regulatory approvals. This development highlights the impact of tensions between the United States and China on corporate dealmaking, particularly in the technology sector. Similar delays in securing approval from Chinese regulators have been seen in other deals, such as DuPont De Nemours Inc’s scrapped $5.2 billion deal with Rogers Corp. Intel CEO Pat Gelsinger had made efforts to gain approval from Chinese regulators for the Tower deal but also emphasized the company’s commitment to its foundry business. In June, Intel announced a $25 billion investment in a new factory in Israel. Investors had already lost hope in the Tower deal, resulting in a significant drop in Tower’s share price. Intel’s foundry business reported increased revenue in the second quarter, driven by advancements in “advanced packaging.” Demand for Intel’s chips has cooled, leading the company to focus on cost-cutting measures.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

Have a tip we should know? tips@rhd.news

Most Read

  1. News
    Pandora Papers Financial Leak Shows Us the Secrets of the World’s Rich and Powerful
    3 years ago
  2. Health
    US Supreme Court Rejects J & J TALC Cancer Case Appeal
    3 years ago
  3. Lifestyle
    9 Habits that Drain your Daily Focus and How to Avoid Them
    3 years ago
  4. BUSINESS
    Women’s Demand for Shapewear – the big Trends
    3 years ago
  5. BUSINESS
    Valentino Launches its Cosmetics Line
    3 years ago
  6. Health
    US Promises to Share 60 million Doses of AstraZeneca Vaccines
    3 years ago
  7. Health
    UK Offers Aid Amid Surging COVID-19 Cases in India
    3 years ago
  8. Sports
    Thousands of fans welcome Charlton funeral cortege at Old Trafford
    7 months ago
  9. News
    Brit left fighting for life after train derails in Argentinia
    7 months ago
  10. BUSINESS
    Dubai faces down airline rivals with $50 bln jet orders
    7 months ago
  11. Sunak
    UK’s Sunak brings back Cameron, sacks Braverman
    7 months ago
  12. Sports
    Man United’s Hojlund, Eriksen withdrawn from Denmark team duty
    7 months ago
  13. Health
    Autumn Sneezing Syndrome is on the rise… here’s what you can do
    7 months ago
  14. Canada
    Canada beat Italy to win Billie Jean King Cup for first time
    7 months ago

Follow @rushhourdaily: