Tower Semi (TSEM 30.00, -3.78, -11.2%): Intel (INTC) announces termination of Tower Semiconductor acquisition
Intel (NASDAQ:INTC) and Tower Semiconductor (NASDAQ:TSEM) mutually agreed to terminate the proposed acquisition of Tower as they were unable to get the required regulatory approvals in a timely manner.
Intel (INTC) will pay a termination fee of $353M to Tower (TSEM).
“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,” said Intel (INTC) CEO Pat Gelsinger. “We are executing well on our roadmap to regain transistor performance and power performance leadership by 2025.”
Intel’s (INTC) foundry unit’s revenue had increased over 300% Y/Y in Q2.
The company also highlighted its recent deals with Synopsys (SNPS) and U.S. Department of Defense, as well as a multigeneration agreement with Arm (ARMHF).
The termination of the Tower (TSEM) was expected, after the companies failed to win Chinese approval before the deadline expired, which was the main obstacle to completing the deal.