Intel Hits Snag in Plans to Enter Faster-growing Foundry Business 8/16/23

Intel is scrapping a $5.4 billion deal for the Israeli chipmaker Tower Semiconductor after failing to get regulatory approval from China, where it derives more than 25% of its revenues. The deal falling through represents a big roadblock for CEO Pat Gelsinger's plans to enter the faster-growing foundry business, which would allow it to manufacture semiconductors for other companies. But one analyst writes, that might not even matter, since no one owns the stock for the foundry business. It’s also another way for China to fight back against the U.S. in the tug-of-war over chip supremacy.