Intel Calls Off $5.4 Billion International Chip Deal After China Fails to Approve Deal by Deadline

Intel Calls Off $5.4 Billion International Chip Deal After China Fails to Approve Deal by Deadline
The Intel logo is displayed on the exterior of Intel headquarters in Santa Clara, Calif., on Jan. 12, 2011. Paul Sakuma/AP Photo
The Associated Press
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HONG KONG—A $5.4 billion acquisition of Israeli chip manufacturer by Intel has been called off after China failed to sign off on the deal amid rising tensions with the United States.

It was a mutual decision between Intel and Tower Semiconductor, the companies said Wednesday. Intel said that the deal was terminated “due to the inability to obtain in a timely manner the regulatory approvals required under the merger agreement.”