China stymies Intel-Tower deal

Author: EIS Release Date: Aug 24, 2023

China has stymied the Intel-Tower deal by refusing regulatory approval and Intel will now pay a termination fee of $353 million to Tower.

 

“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,” says CEO Pat Gelsinger (pictured) “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.”  

 

“After careful consideration and thorough discussions and having received no indications regarding certain required regulatory approval, both parties have agreed to terminate their merger agreement having passed the August 15, 2023 outside date,” said Tower Semiconductor.

 

Intel’s foundry business had revenues of $232 million last year as it seeks to become the world No.2 foundry.