After regulators failed to approve the deal, Intel decided to terminate its planned$5.4 billion acquisition of Israeli chipmaker Tower Semiconductor. The mutual termination between Intel and Tower Semiconductor directly results from regulatory hurdles. Specifically, in time, the deal did not receive approval from Chinese antitrust regulators. It is the latest victim of the current tensions between China and the US on trade, intellectual property, and Taiwan.

Why does it matter? The giant chip manufacturer is pivotal to the US strategy to regain leadership in semiconductor manufacturing. The acquisition would have allowed Intel to extend its manufacturing capabilities and compete with Taiwan's TSMC and Korea's Samsung. Canceling the merger agreement is also a testament to the technology battle between Washington and Beijing, with semiconductors at the epicenter.