(Reuters in New York) Intel and Israeli chip manufacturer Tower Semiconductor (referred to as TOWER) on Wednesday (August 16) announced that it has terminated transactions worth $ 5.4 billion (about 7.3 billion yuan).
Intel, which has a long history in China, has canceled the transaction because it was unable to obtain the approval of the Chinese Anti-Trust regulatory agency during the validity period of the two companies.
The statement issued by Intel said that the company decided to acquire TOWER last year and stated that it would pay the other party's 353 million yuan transaction termination fee.
Reuters quoted a statement issued by TOWER: "After careful consideration and detailed discussion, and not received instructions on some necessary regulatory approval, the two parties agreed to terminate the consolidated agreement."
Reporting the tension caused by China and the United States for the future of trade, intellectual property and the future of Taiwan has affected corporate transactions, especially companies related to technology.
Intel President Pat Gelsinger said he tried to obtain approval from Chinese regulators for Tower's transactions and met in July with government officials in July.
However, he also pointed out that, regardless of the result of TOWER transactions, Intel will invest in the casting plant for other companies to make chips.
Investors also gave up hope for the transaction. The TOWER stock price listed on Nasdaq on Tuesday was closed at $ 33.78 on Tuesday, which is a significant discount compared to a transaction price of $ 53 per share.
The demand of Intel chip has grown strongly due to the office of the crown disease. However, the demand after the epidemic has slowed down, which led to the reduction of the cost of this chip company.It has promised to reduce the cost of $ 3 billion in 2023, with the goal of saving 8 billion to $ 10 billion by the end of 2025.
