Two months after Intel announced a $25 billion Kiryat Gat factory—the largest ever foreign investment in Israel—Chinese regulators didn’t approve the semiconductor chip manufacturing giant’s $5.4 billion bid to buy Israeli chipmaker Tower Semiconductor.
Beijing’s decision to let a Tuesday deadline pass lead Intel and Tower to agree to scrap the deal. Tower’s stock dropped 11%. Intel will reportedly pay Tower $353 million.
Patrick Gelsinger, CEO of Intel, had traveled to China last month to try to win regulators over, the Associated Press reported.