Intel bows out of US$5.4b Tower acquisition

With dreams of becoming a true rival of TSMC, Intel made the move to acquire Israeli based Tower Semiconductor in February of 2022. The specialist chip maker would provide Intel a much needed shot in the arm for contract chip construction with Tower having expertise with RF chips and CMOS image sensors. Unfortunately for Intel the deal has fallen through with Bloomberg reporting that required regulatory approval never came from Chinese authorities likely due to the semiconductor chip war between the US & China. The failed acquisition will cost Intel US$353m, which they'll pay to Tower for terminating the contract.