Intel and Tower Semiconductor cancel $5.4B merger over regulatory hurdles

Intel's decision to cancel its plan to acquire Tower Semiconductor due to regulatory obstacles.

Key points:

1. Intel's plan to acquire Tower Semiconductor for $5.4 billion aimed to enhance its contract chip-making business and expand its global reach.
2. The acquisition would have supported Intel's IDM 2.0 strategy, which involves building semiconductor chips through its own factories, third-party factories, and foundry services.
3. Regulatory hurdles, particularly in China, prevented the deal from proceeding, leading Intel to pay a termination fee of $353 million to Tower Semiconductor.

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