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HomeTechnologyIntel Abandons A $5.4 billion Purchase

Intel Abandons A $5.4 billion Purchase

On Wednesday, Intel announced the termination of its acquisition of Israeli chipmaker Tower Semiconductor, claiming it was unable to obtain the necessary regulatory approval.

Due to “the inability to achieve in a timely way the regulatory approvals required under the merger agreement,” the IT giant stated in a statement that it is abandoning the proposed merger.

A termination fee of $353 million will be paid to Tower by the American chip giant.

In February 2022, Intel disclosed plans to purchase Tower, a contract chipmaker that produces semiconductors for other businesses, for $5.4 billion.

The agreement would have given Intel a foothold in the specialised technology on which Tower specialises, such as industrial sensors and radio frequency.

Source (CNBC)

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