NEW YORK: Intel (INTC.O) and Israeli contract chipmaker Tower Semiconductor’s (TSEM.TA) proposed $5.4 billion deal has been mutually terminated as they were unable to get timely regulatory approvals, the companies said on Wednesday.
Shares of the Israeli company fell about 9% in the United States as well as Tel Aviv.
Intel, which had decided to buy Tower last year, will pay a termination fee of $353 million to the latter, the company said in a statement.
Tower and Intel did not provide details on the regulatory approvals.
“After careful consideration and thorough discussions and having received no indications regarding certain required regulatory approval, both parties have agreed to terminate their merger agreement having passed the August 15, 2023 outside date,” Tower Semiconductor said in a statement.
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The development underscores how tensions between the United States and China over issues including trade, intellectual property and the future of Taiwan are spilling over into corporate dealmaking, especially when it comes to technology companies.
Last year, DuPont De Nemours Inc (DD.N) scrapped its $5.2 billion deal to buy electronics materials maker Rogers Corp (ROG.N) after delays in securing approval from Chinese regulators.
