- Intel will pay a termination fee of $353 million to Tower
- Pat Gelsinger, CEO, Intel, noted that Intel will continue to look for work opportunities with Tower
Due to the inability to obtain in a timely manner the regulatory approvals required under the merger agreement, Intel Corporation today announced that it has mutually agreed with Tower Semiconductor to terminate its previously disclosed agreement to acquire the latter.
Notably, Intel will pay a termination fee of $353 million to Tower. The entire deal was said to be worth $5.4 billion. Previously, the company had said that this acquisition accelerates its path to becoming a major provider of foundry services and capacity globally.
Russell Ellwanger, CEO, Tower Semiconductor, commented, that during the past 18 months, the company has made significant technological, operational, and business advancements.
He said, “We are well positioned to continue to drive our strategic priorities and short-, mid- and long-term tactics with a continued focus on top and bottom-line growth.”
Pat Gelsinger, CEO, Intel, noted that Intel will continue to look for work opportunities with Tower. He said, “We are executing well on our roadmap to regain transistor performance and power performance leadership by 2025, building momentum with customers and the broader ecosystem and investing to deliver the geographically diverse and resilient manufacturing footprint the world needs.”
