2023-07-30 03:12:00
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30.07.2023 06:12, Alexey Razin
In the first quarter of 2022, Intel announced its intention to buy the assets of the Israeli company Tower Semiconductor, which is a contract manufacturer of specialized chips, for $5.4 billion. Now the fate of the deal depends on the decision of the Chinese antimonopoly authorities, which has not yet been adopted, but the deadline for agreeing on the deal falls on August 15 this year. Intel is not yet ready to discuss an increase in the timing of the deal.
Image Source: Intel
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 compensation. According to the management, Tower Semiconductor’s business would be integrated into Intel’s contract division, allowing the American giant to gain experience from the Israeli company on interaction with many small customers in the field of contract manufacturing of chips. According to Seeking Alpha Referring to an interview with the head of Intel channel CNBC, Patrick Gelsinger (Patrick Gelsinger) believes that the company’s own contract business does not depend in its development on the outcome of the deal with Tower Semiconductor.
He did not comment on the possibility of extending the consideration of the transaction beyond August 15, but explained: “Obviously we are working with Chinese regulators and hopefully we can come to a conclusion soon. We are doing everything we can to complete this deal.”. Recall that in recent months, the head of Intel has twice visited China, where he participated in negotiations with Chinese regulators, trying to meet their requirements for the terms of approval of the transaction, which are not publicly discussed.
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