Chipzilla Intel announced a US$5.4 billion plan to acquire Tower at $53 per share in mid-February 2022, saying it expected to close the deal within about 12 months, subject to regulatory approvals. It was widely seen as a good way for Intel to gain foundry market share and absorb foundry know-how and business culture.

As such the deal is crucial to Gelsinger’s strategy for Intel which is intended to separate chip product development and sales from chip manufacturing. However, the Chinese regulator has not signed off on the deal for which the termination deadline is August 15.

The Chinese regulator has withheld approval on major semiconductor deals before; most notably on the planned takeover of NXP Semiconductors by Qualcomm in 2018.

Since then US-China relations have become increasingly strained over a series of export control limitations on technology imposed by the US.

Gelsinger arrived in China earlier this week and is visiting with  China’s antitrust regulator, the State Administration for Market Regulation.