FILE PHOTO: A smartphone with a displayed Intel logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
NEW YORK: Intel Corp will walk away from its $5.4 billion deal to acquire Israeli contract chipmaker Tower Semiconductor Ltd once the companies' contract expires later on Tuesday, according to people familiar with the matter.
Intel, which signed the deal to buy Tower in February 2022, did not secure approval from Chinese regulators for the acquisition as required under its contract with the Israeli firm, the sources said.
