Intel Corp. scrapped a $5.4 billion deal to acquire contract chipmaker Tower Semiconductor after the merger agreement expired without China giving regulatory approval.
Intel CEO Pat Gelsinger said he has been trying to get the deal approved by Chinese regulators after meeting with government officials there in July.
At the same time, Gelsinger said the company was also investing in its foundry business, which makes chips for other companies. Intel's foundry business reported second-quarter revenue of $232 million, up from $57 million in 2022. Intel CEO Pat Gelsinger holds up a semiconductor as he testifies during a hearing before Senate Committee on Commerce, Science, and Transportation at Russell Senate Office Building on Capitol Hill on March 23, 2022, in Washington, D.C.
Chip demand for Intel has been down after two years of growth powered by remote work during the pandemic. It has committed to trimming $3 billion in costs this year, with an aim of saving between $8 billion and $10 billion by the end of 2025.
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