The deal won’t go through
Intel will not buy Tower Semiconductor. The participants in the transaction announced the termination of the previously announced agreement .
The company announced the deal in early 2022, but now Intel says that due to the inability to obtain regulatory approvals in a timely manner, the deal had to be canceled.
Intel will have to pay $353 million due to the fact that the company was unable to buy Tower Semiconductor by the deadline
Buying Tower Semiconductor was supposed to cost Intel $5.4 billion. Due to the disruption of the deal, Intel will have to pay Tower Semiconductor a penalty in the amount of $353 million.
Recall that Intel wanted to acquire this company to strengthen its semiconductor contract manufacturing business. Tower strengths include expertise in specialty technologies such as radio frequency (RF), power, silicon germanium (SiGe) products and industrial sensors. The company also owns extensive partnerships in the field of intellectual property creation and design automation and established contract manufacturing.
