Intel scraps $5.4 billion acquisition of Tower Semiconductor after regulators fail to approve deal

Intel connected Wednesday terminated its acquisition of Israeli chipmaker Tower Semiconductor, saying it failed to unafraid the required regulatory approval.

The tech elephantine said successful a statement it is scrapping the planned woody "due to the inability to get successful a timely mode the regulatory approvals required nether the merger agreement."

The U.S. spot elephantine volition wage a termination interest of $353 cardinal to Tower.

Intel announced intentions to bargain Tower — a declaration chipmaker that manufactures semiconductors for different companies — successful February 2022 for $5.4 billion.

The woody would person fixed Intel a foothold successful the specialty technologies connected which Tower focuses, similar vigor frequence and concern sensors. 

Tower Semiconductor shares were down 8% astir 4:18 a.m. ET.

Reuters, citing radical acquainted with the matter, reported connected Tuesday that Intel did not unafraid support for the woody from the Chinese authorities earlier the deadline passed. Chinese authorities person not publically communicated approving the purchase.