Intel’s decision to scrap a $5.4bn (£4.2bn) international chip deal to acquire Tower Semiconductor has been considered a result of deteriorating relations between Beijing and Washington. 

The two companies said the decision was mutual and had been made after Chinese regulators failed to approve the deal by a deadline, despite Intel CEO Patrick Gelsinger’s trips to the Asian country to get the deal greenlighted. 

Intel said that the deal was terminated “due to the inability to obtain in a timely manner the regulatory approvals required under the merger agreement”.

“Our foundry efforts are critical to unlocking the full potential of IDM 2.0, and we continue to drive forward on all facets of our strategy,” Gelsinger said. “We are executing well on our roadmap to regain transistor performance and power performance leadership by 2025, building momentum with customers and the broader ecosystem and investing to deliver the geographically diverse and resilient...