Intel refuses to buy Tower Semiconductor – Kommersant
[ad_1]
According to Bloomberg citing its own sources, Intel Corp. is not likely to buy Israeli Tower Semiconductor. The American corporation did not have time to get the approval of the regulators before the end of the allotted time, which expired on Tuesday.
The parties have agreed that Intel will buy Tower Semiconductor in February 2022. Sum deals amounted to $ 5.4 billion. Initially, Intel planned to close the deal in the first quarter of 2023, but already in March it said that this process was being delayed due to the fact that the company was unable to secure the approval of Chinese regulators. The expected closing date of the deal was shifted to the second quarter of this year, but the company failed to enlist the support of the Chinese authorities.
According to sources ReutersIntel does not intend to extend the deadline for closing the deal, but will instead pay the Israeli company a penalty in the amount of $353 million.
Tower Semiconductor has neither revenues comparable to Intel nor such advanced microchip technologies. Tower is engaged in contract manufacturing of chips and owns a large number of foundries. Intel wanted to acquire Tower in order to develop its own contract business, because the position of the American company in this segment of the microchip market, dominated by Taiwan Semiconductor Manufacturing (TSMC), is not very strong. Earlier, Intel CEO Pat Gelsinger said that the company will increase investment in the contract business, regardless of the deal with Tower.
Tower Semiconductor shares fell to $33.78 amid the expiration of the closing date of the deal with Intel on Tuesday, which is significantly lower than the price at which Intel was going to buy them out – $53.
[ad_2]
Source link
