Intel to walk away from $5.4 billion acquisition of Tower Semiconductor-sources By Reuters

© Reuters. FILE PHOTO: Tower Semiconductor is seen on smartphone in entrance of displayed Intel brand on this illustration taken, February 15, 2022. REUTERS/Dado Ruvic/Illustration/File Picture

By Anirban Sen

NEW YORK (Reuters) – Intel Corp (NASDAQ:) will stroll away from its $5.4 billion deal to accumulate Israeli contract chipmaker Tower Semiconductor (NASDAQ:) Ltd as soon as the businesses’ contract expires afterward Tuesday, in accordance with individuals aware of the matter.

Intel, which signed the deal to purchase Tower in February 2022, didn’t safe approval from Chinese language regulators for the acquisition as required beneath its contract with Tower, the sources stated.

It doesn’t plan to barter an extension of the contract, and can as a substitute pay Tower a $353 million break-up payment to stroll away, the sources added.

Intel and Tower declined to remark.