Intel will not purchase Tower Semiconductor after all

What you need to know

  • Intel has canceled its purchase of Tower Semiconductor.
  • The deal was first announced in February 2022, but it ran into regulatory issues that prevented it from going through.
  • Following two extensions to buy time to get the deal approved by Chinese regulators, Intel and Tower have come to a mutual agreement to terminate the acquisition.

After 18 months and two extensions, Intel’s $5.4 billion deal to purchase Tower Semiconductor has been terminated. The two companies came to a mutual agreement to end the deal today, August 16, 2023. Intel cited the “inability to obtain in a timely manner the regulatory approvals” as the reason the deal fell through.

Intel first announced the deal in February 2022. The purchase was expected to be completed within a year, but the deadline was extended twice. Tower would have become a key piece of Intel’s IDM 2.0 strategy. Ultimately, Intel and Tower decided to not go through with the sale due to regulatory roadblocks.

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