Intel abandoned the acquisition plan of the semiconductor company 'Tower Semiconductor' which has a factory in Japan due to interference by the Chinese authorities

Intel has announced that it has abandoned the acquisition plan of Tower Semiconductor (Tower Semiconductor), which has been underway since 2022. Both Intel and Tower Semiconductor were positive about the acquisition, but the deal fell through because regulators did not approve the deal.

Intel Announces Termination of Tower Semiconductor Acquisition
https://www.intel.com/content/www/us/en/newsroom/news/intel-news-aug-2023.html

Tower Announces Termination of Acquisition Agreement with Intel - Tower Semiconductor Tower Semiconductor
https://jp.towersemi.com/2023/08/16/08162023/

From 2021, Intel is promoting the expansion plan ` ` IDM 2.0 '' of the foundry service that undertakes the manufacture of semiconductors designed by other companies. In February 2022, Intel announced plans to acquire the foundry `` Tower Semiconductor '', which has a factory in Japan as part of IDM 2.0, for about 620 billion yen.

Intel announces acquisition of Israeli foundry 'Tower Semiconductor' for about 620 billion yen - GIGAZINE

by Morton Lin

At the time of the plan announcement in February 2022, the two companies had reached an agreement, and the acquisition was scheduled to be completed in about 12 months after regulatory approval and various procedures. However, the acquisition agreement was not completed by the transaction deadline of August 15, 2023, and the two companies have terminated the acquisition agreement.

It was reported that regulators related to China's antitrust law were delaying approval of the acquisition agreement between Intel and Tower Semiconductor. In announcing the termination of the deal, Tower Semiconductor said it 'did not receive any response regarding the necessary regulatory approvals,' suggesting that interference from Chinese authorities likely forced the termination of the deal. is seen.

In addition, Russell Ellwanger , CEO of Tower Semiconductor, said, 'I was waiting for Intel to join Intel to realize Pat Gelsinger's vision for Intel's foundry business.' , emphasizing that both companies were open to the acquisition.