Intel acknowledges Tower takeover delay
Intel has given itself another quarter to try and close its deal to acquire specialty foundry Tower Semiconductor Ltd. (Migdal Haemek).
Intel announced a US$5.4 billion plan to acquire Tower at $53 per share, in mid-February 2022, saying it expected to close the deal within about 12 months, subject to regulatory approvals. It was widely seen as a good way for Intel to absorb some foundry know-how and business culture.
However, 13-months on and the deal appears to be stalled. It has been reported that China’s State Administration for Market Regulation (SAMR), suspended the clock in its review of the transaction in January. It is reported that Intel and Tower had responded to the regulator’s questions by the end of January.
“While we continue to work to close the Tower transaction within the first quarter of 2023, the transaction may close in the first half of 2023, subject to certain regulatory approvals and customary closing conditions,” Intel reportedly said in a statement.
Intel has appointed Stuart Pann to lead Intel Foundry Services.
Related links and articles:
Intel set to buy foundry Tower for $5.4 billion
Business planner Pann to lead Intel Foundry Services
Intel’s foundry boss is set to move on
Tower foundry’s growth tapers down in 3Q22
Tower raises revenue, profit before joining Intel