Due to the US-China conflict, Intel cancels its plan to acquire Tower Semiconductor in Israel.
🟦 Intel abandons acquisition of Tower Semiconductor
Intel has abandoned its acquisition of Tower Semiconductor, an Israeli semiconductor foundry. This was mainly due to the lack of approval from Chinese regulators. Intel will pay Tower Semiconductor $3 million (about 5300 billion yen) as a penalty for abandoning the acquisition. Intel had announced the acquisition of Tower Semiconductor in February 500 for $2022.2 billion.
🟦 Deterioration in US-China Relations Affects M&A Strategy
The United States is tightening export restrictions on China in the field of semiconductors, and the deterioration of U.S.-China relations is affecting M&A strategies. China’s approval of semiconductor-related M&A is becoming more difficult. IN A SIMILAR CASE, APPLIED MATERIALS, THE LARGEST SEMICONDUCTOR MANUFACTURING EQUIPMENT COMPANY IN THE U.S., ABANDONED ITS ACQUISITION OF KOKUSAI ELECTRIC IN 2021.
🟦Summary
As the US-China conflict made it difficult for Chinese regulators to approve the acquisition, Intel canceled its plan to acquire Tower Semiconductor of Israel.
Large-scale acquisitions in the semiconductor industry may be becoming more difficult due to the wishes of national authorities.
