Intel Scraps $5.4 Billion Tower Semiconductor Deal After Failure To Secure Chinese Regulatory Approval

Intel terminated its planned $5.4 billion acquisition of Tower Semiconductor due to inability to obtain timely regulatory approval from China.
The companies mutually agreed to cancel the deal after waiting over 18 months for Chinese regulators to complete their review.
Intel will pay Tower Semiconductor a $353 million termination fee rather than extend the acquisition agreement further.
The failed deal represents a setback in Intel's strategy to expand its chip manufacturing capabilities and become a major provider of contract chipmaking services.
Tensions between the U.S. and China over trade and technology likely contributed to the regulatory delays that doomed the transaction.