Intel Acquisition Of Tower Semiconductor Falls Through

[phoronix]

Phoronix: Intel Acquisition Of Tower Semiconductor Falls Through

Back in February 2022 Intel announced plans to acquire Tower Semiconductor. However, one and a half years later the deal is now being called off due to failure to obtain regulatory approval...

https://www.phoronix.com/news/Intel-No-More-Tower-Acquisition

[schmidtbag]

Termination fee? For that much? Surely, they could just keep the acquisition pending indefinitely and not pay.

[chromer]

$353 million USD for a termination fee is a very high price, maybe its an intentional action, idk.

[Phil995511]

China should have no say in such purchases.

In the midst of a China vs. USA technology war, if asked for its opinion, it makes sense for China to stand in the way in order to prevent Intel (a competing US company) from developing...

[coder]

China should have no say in such purchases.

I think the issue is that the deal included Chinese subsidiaries that Intel wanted. Even if that weren't the case, I think it's possible the deal could jeopardize Intel's ability to do business in China, if their regulators felt it gave Intel too much market power or something.

In the midst of a China vs. USA technology war, if asked for its opinion, it makes sense for China to stand in the way in order to prevent Intel (a competing US company) from developing...

This is definitely about the trade/IP tensions, IMO. Had Intel tried this move a few years ago, it probably would've gone through.

However, it's worth keeping in mind what happened to WD's acquisition of HGST:

It was acquired by Western Digital in 2012. However, until October 2015, it was required to operate autonomously from the remainder of the company due to conditions imposed by Chinese regulators. Chinese regulators later permitted Western Digital to begin wider integration of HGST into its main business.

Source: https://en.wikipedia.org/wiki/HGST

[fitzie]

I think the issue is that the deal included Chinese subsidiaries that Intel wanted. Even if that weren't the case, I think it's possible the deal could jeopardize Intel's ability to do business in China, if their regulators felt it gave Intel too much market power or something.


This is definitely about the trade/IP tensions, IMO. Had Intel tried this move a few years ago, it probably would've gone through.

However, it's worth keeping in mind what happened to WD's acquisition of HGST:

It was acquired by Western Digital in 2012. However, until October 2015, it was required to operate autonomously from the remainder of the company due to conditions imposed by Chinese regulators. Chinese regulators later permitted Western Digital to begin wider integration of HGST into its main business.

Source: https://en.wikipedia.org/wiki/HGST

it would have gone through in the past with some concession the Chinese government would have insisted upon. I would put the blame on the US government failing to convince China to approve the deal. "tensions" is more of a description of the state of affairs, not who the actors are that are responsible for making something happen.

[colejohnson66]

$353 million USD for a termination fee is a very high price, maybe its an intentional action, idk.

Wasn't Twitter's termination fee a billion dollars?

[Duve]

Okay you have to wonder what Pat's moved is now, because Tower was really important on the packaging front. It was very clear that intel was going to integrate that IP stack into its IFS products, so now they have to walk away from it.

It would figure that Tower Semiconductor would have assets in China and the Chinese government would have something to say about it.