The $1.5 billion investment was supposed to be a concession to local authorities.
The US sanctions in their current form do not prevent the preservation of Intel’s manufacturing facility in China in the city of Chengdu. Interest in him, according to Dealreporter, was fueled by rumors about new requirements from the Chinese authorities as part of negotiations with Intel to approve a deal to buy the Israeli company Tower Semiconductor. China is a large sales market for Intel products, and therefore the company is forced to coordinate with local antimonopolists the purchase of a company whose headquarters is located outside of China.
Image Source: Intel
Some time ago, rumors arose that Intel was seeking approval from the US authorities for a $1.5 billion investment in its Chengdu facility, a move that is a concession to the demands of the Chinese authorities, who are willing to approve a deal with Tower Semiconductor in exchange for such an investment. Representatives of Intel had to refute this information. According to them, the company does not conduct such approvals with US regulators.
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The deal with Tower Semiconductor is coming to an end, but Intel still has the opportunity to resubmit documents to restart the approval process with the Chinese antitrust authorities. This coming Thursday, Intel will publish its quarterly report, at the same time there may be news about the progress of the approval of this transaction, which was announced back in February.