Intel Scraps $5.4 Billion Deal for Israel's Tower

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Bloomberg Aug 16, 2023 16:00 · 13.1k Views

Intel said it’s walking away from its attempt to acquire Tower Semiconductor, abandoning a $5.4 billion deal after failing to win regulatory approval in time. Debby Wu has the details.

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Transcript

  • 00:00 Why did this deal fail to go through?
  • 00:02 Is it all about geopolitics?
  • 00:06 It is
  • 00:06 pretty very much so.
  • 00:08 So Intel says that it is terminating the
  • 00:10 acquisition deal because
  • 00:12 it failed to get the regulatory approval.
  • 00:15 So
  • 00:16 that means Beijing has not
  • 00:18 signed off on the deal before The
  • 00:21 deadline for the transaction
  • 00:23 ended at midnight California time
  • 00:26 earlier today.
  • 00:28 OK.
  • 00:29 And then there could be a geopolitical angle to that.
  • 00:31 Then
  • 00:32 what does this mean for Intel's future?
  • 00:33 Debbie,
  • 00:36 So
  • 00:36 Intel's
  • 00:38 CEO, Pat Gaussinger has been trying to
  • 00:41 bring
  • 00:41 Intel to
  • 00:43 enter the foundry business and compete with
  • 00:47 Taiwan Semiconductor Manufacturing Company and then Samsung Electronics to
  • 00:52 better
  • 00:53 to sort of grow our
  • 00:55 revenue straight forward the US company.
  • 00:57 But
  • 00:58 due to
  • 00:59 the failure to acquire
  • 01:01 Tower Semiconductor, this could
  • 01:03 sort of become more challenging for Intel to
  • 01:07 get into the market.
  • 01:08 So we'll have to wait and see whether
  • 01:10 Intel comes up with a new strategy to better compete with
  • 01:14 TSMC and Samsung on the foundry front.