Intel will not take over chip manufacturer Tower because approval is not forthcoming

Intel will not take over the Israeli chip manufacturer Tower Semiconductor after all. The companies announced the acquisition in February last year, but because the necessary approval from regulators was not forthcoming, the parties stopped the acquisition.

The acquisition stops because it is not possible to obtain the necessary approvals ‘in time’, reports Intel. The company does not say which regulator has not yet given approval. According to anonymous Reuters sources In any case, China has not yet given the necessary approval. Now that the takeover does not go through, Intel will pay a termination fee of $353 million to Tower.

With the acquisition, Intel aimed to accelerate becoming a “major provider of foundry services and capabilities” as part of its IDM 2.0 strategy. The acquisition cost $5.4 billion. Tower produces 150mm, 200mm and 300mm wafers for, for example, automotive chips, image sensors and power management chips.

Although the acquisition falls through, Intel says it plans to continue with its IDM 2.0 strategy. Intel also says it wants to continue working with Tower, without going into details. In June, Intel announced that it would build a new chip factory worth 22.9 billion euros in Israel.