The reason for this was the failure to obtain the necessary permits from the authorities. Both companies said on Wednesday that they did not want to pursue the project any further.
The reason may have been a veto by China: Like other major economies, China has to agree to major cross-border takeovers, even if none of its companies are involved. The background is probably the dispute over technology components that is currently raging between the USA and China. Washington wants to deny Beijing access to technology related to chips and artificial intelligence as far as possible. Intel wanted to pay $5.4 billion for Tower. Tower is set to receive $353 million in compensation.
