Today, Intel officially
announced the termination of a $5.4 billion deal with Tower Semiconductor that was supposed to propel Intel closer to its "goal of becoming the second-largest global external foundry by the end of the decade."
Yesterday, the deadline for completing the deal passed after the tech companies failed to secure timely regulatory approval in China, Intel said in its press release.
Intel and Tower reached the deal back in February 2022.
According to Bloomberg, this week's scrapping of the deal was expected, as Chinese officials dragged their feet for months, ultimately never signing off on it.
The deal appears to have been terminated amicably, with Intel paying a $353 million termination fee to Tower.
"Our respect for Tower has only grown through this process, and we will continue to look for opportunities to work together in the future," Pat Gelsinger, Intel's CEO, said in the press release.
