US chip giant Intel may have to abandon its plan to acquire Israeli semiconductor group Tower Semiconductor for billions of dollars, according to economic experts. The reason is the lack of permits. Since the deal completion deadline is August 15 at midnight California time (9am Austrian time), the companies no longer expect timely approval from supervisors.
In February last year, Intel announced that it would acquire Tower Semi for $5.4 billion. The chip maker wanted to expand its production capabilities to be able to compete with TSMC, the world’s largest chip contract manufacturer from Taiwan. Investors were already pricing in the deal: Tower Semi lost a fifth of its value on the stock exchange. Shares closed at $33.78 the night before, well below the proposed acquisition price of $53 per share.