Intel to walk away from $5.4 bln acquisition of Tower Semiconductor-sources

Tower Semiconductor

16/08/2023 03:27

By Anirban Sen
       NEW YORK, Aug 15 (Reuters) - Intel Corp  INTC.O  will
walk away from its $5.4 billion deal to acquire Israeli contract
chipmaker Tower Semiconductor Ltd  TSEM.TA  once the companies'
contract expires later on Tuesday, according to people familiar
with the matter.
    Intel, which signed the deal to buy Tower in February 2022,
did not secure approval from Chinese regulators for the
acquisition as required under its contract with Tower, the
sources said.
    It does not plan to negotiate an extension of the contract,
and will instead pay Tower a $353 million break-up fee to walk
away, the sources added.
    Intel and Tower declined to comment.
    
    

 (Reporting by Anirban Sen in New York
Additional reporting by Max Cherney in San Francisco
)
 ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
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