Intel will pay a termination fee of $353 million to Tower.

On February 15, Intel agreed to acquire Tower Semiconductor at a 60% premium. 

In May, Tower Semiconductor reported a first-quarter FY23 revenue decline of 15.6% year-on-year to $355.6 million, beating the consensus of $352.4 million. EPS of $0.64 beat the consensus of $0.47.

Reports suggested that the deal expired due to a lack of regulatory approval from China.

China's move reflects escalating geopolitical tensions with the U.S., which led to an additional embargo on China's access to artificial intelligence technology.

Price Action: TSEM shares traded lower by 10.40% at $30.27 premarket on the last check Wednesday.