Intel calls off $5.4 bn semiconductor deal after failing to get approvals

Intel will terminate a USD 5.4 billion deal to acquire Israeli chip manufacturer Tower Semiconductor after China failed to sign off on the deal amid rising tensions with the United States.

It was a mutual decision between Intel and Tower, the companies said Wednesday.

Intel said that the deal was terminated due to the inability to obtain in a timely manner the regulatory approvals required under the merger agreement.

Intel Corp. will pay Tower a termination fee of USD 353 million, the US semiconductor giant said.