In the first quarter of 2022, Intel announced its intention to buy the assets of Israeli specialty chip maker Tower Semiconductor for $5.4 billion. Now the fate of the deal depends on the decision of China’s antimonopoly authorities, which has not yet been adopted, but the deadline for agreeing on the deal is August 15 this year. Intel isn’t ready to talk about extending the deal timing just yet.
Intel’s quarterly report on Form 10-Q clarifies that if the deal fails, the company will have to pay Tower Semiconductor $353 million in damages. According to management, Tower Semiconductor’s business would be integrated into Intel’s contract division, which would allow the American giant to gain experience with the Israeli company in dealing with many small customers in the field of contract manufacturing of chips. Accordingly I’m looking for Alpha Citing an interview with the head of the Intel broadcaster CNBC, Patrick Gelsinger believes that the development of the company’s own contract business is not dependent on the outcome of the deal with Tower Semiconductor.
He did not comment on the possibility of extending the review of the transaction beyond August 15, but stated: “Of course we are working with the Chinese regulators and hope to come to a conclusion soon. We are doing everything we can to close this deal.”. Recall that the head of Intel has visited China twice in recent months, where he has participated in negotiations with Chinese regulators to meet their requirements for the conditions of the deal’s approval, which are not publicly discussed.