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Truth & Consequences

What Happens If China Blocks Intel's Tower Deal?

A corporate breakup is not impossible if the chipmaker’s foundry goals are thwarted.
Tower Semiconductor

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By Peter Clarke

For want of a nail, the shoe was lost.
For want of a shoe, the horse was lost.
For want of a horse, the rider was lost.
For want of a rider, the message was lost.
For want of a message, the battle was lost.
For want of a battle, the kingdom was lost.
And all for the want of a horseshoe nail.

Intel has dreams of being the world’s second largest foundry by 2030. Those are big dreams indeed, with geopolitical overtones, but without taking the first step along that road – the acquisition of Tower Semiconductor Ltd. – it could all come to nothing.

And if China blocks Intel’s takeover of Tower, it could potentially upend the U.S. chip giant’s foundry aspirations. It could even compel Intel to abandon chipmaking and follow AMD down the path of being a fabless processor vendor.

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