“Intel Corporation has mutually agreed with Tower Semiconductor to terminate the merger agreement due to the failure to secure the necessary regulatory approvals within the specified timeframe,” stated Intel in a press release.
Last year in February, Intel had unveiled its intention to acquire the Israeli chip manufacturer as part of its expansion strategy for the foundry business. The aim was to strengthen its position against competitors like TSMC from Taiwan.
The CEO of Intel, Pat Gelsinger, emphasized that the company remains committed to its foundry efforts, which are crucial for fully realizing the potential of IDM 2.0. Gelsinger stated, “We are effectively executing our roadmap to regain leadership in transistor and power performance by 2025. We are gaining momentum with customers and the broader ecosystem and investing to establish a resilient and geographically diverse manufacturing footprint that meets global needs. Throughout this process, our respect for Tower Semiconductor has only grown, and we will continue exploring future opportunities for collaboration,” said Gelsinger.
In 2021, Intel established its foundry services as a separate business unit, investing $20 billion in the construction of two state-of-the-art factories in Arizona. Moreover, the company unveiled plans for the development of a massive semiconductor facility in Ohio, envisioned to be the largest silicon manufacturing site globally.
Under the terms of the merger agreement, Tower Semiconductor will receive a termination fee of $353 million from Intel. Gelsinger further added, “Throughout this process, our respect for Tower Semiconductor has only grown, and we will continue exploring future opportunities for collaboration.”
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