Surprisingly, Intel stopped the deal after failing to get approval from Chinese regulators.

How did the Chinese regime cause the deal to fail?

News about the chip war between the US and China. The latest acquisition of Intel, the American chip giant, has completely failed. The deadline for the completion of the deal worth 5.4 billion dollars has passed, leading back to China. The corporation stopped the plan with the Israeli chip maker Tower Semiconductor after failing to get approval from the Chinese regulators.

"It is strange that they would block the deal, I would say that the only reason I can think of is that the Chinese government wants to take revenge on the US government and US businesses for the sanctions that the US imposed on the export of technology to China."

Intel hoped to increase its chip production by purchasing the Israeli chip maker. The agreement was signed in 2022 and at a glance did not pose a threat to the second largest economy in the world. Canceling the deal comes with its own bill and costs Intel over $350 million. With the news report, Tower Semiconductor's stock plummeted and recorded an 11% drop in the list of US-traded stocks. 

As for the question of why an American technology giant needs China's approval:

"This antitrust law requires that all foreign businesses operating in China, a large business located in China, must obtain government approval for any merger or acquisition. Both have businesses operating in China, so that's why they are subject to regulatory approval by the Chinese government."

In 2022, Beijing expanded its antitrust law for the first time in 14 years. The ACT (Chips Act) gives Beijing more power to impose penalties or regulations on companies operating inside China.