Intel calls off $5.4b Tower deal after failing to obtain regulatory approvals

HONG KONG (AP) — Intel is terminating a $5.4 billion agreement to acquire Israeli chip manufacturer Tower Semiconductor after China failed to sign off on the deal amid deteriorating US-China relations. Both Intel and Tower said they had mutually agreed to call off the deal. Intel said that the deal was terminated as it did not receive regulatory approvals required for the merger, and that it would pay Tower a termination fee of $353 million. The deal required regulatory approval from several juridictions, but China did not greenlight the deal by the deadline amid increasing U.S.-China tensions, particularly as the U.S. tightened export controls and restrictions aimed at crippling China’s ability to purchase and manufacture advanced chips.