Intel Terminates Planned Acquisition Of Tower Semiconductor

(RTTNews) - Chip maker Intel Corp (INTC) announced on Wednesday that it has agreed to terminate its agreement to acquire Tower Semiconductor (TSEM) due to the inability to obtain regulatory approvals in a timely manner.

According to the merger agreement dated February 15, 2022, Intel will pay a termination fee of $353 million to Tower.

"We are executing well on our roadmap to regain transistor performance and power performance leadership by 2025, building momentum with customers and the broader ecosystem and investing to deliver the geographically diverse and resilient manufacturing footprint the world needs. Our respect for Tower has only grown through this process, and we will continue to look for opportunities to work together in the future," commented Pat Gelsinger, CEO of Intel.

On Tuesday, shares of Intel closed at $34.77, down 2.55% on Nasdaq and TSEM shares closed at $33.78 down 0.47%.