(AOF) – Intel announced on Wednesday the abandonment of its proposed acquisition for 5.4 billion dollars of the Israeli company Tower Semiconductor. Reason invoked: the American giant of computer chips could not obtain regulatory authorizations in due time. Intel will pay Tower Semiconductor, whose stock fell 9% pre-market in New York, a termination fee of $353 million. The completion of the operation had already been postponed several times.
Tower Semiconductor is an Israeli company that manufactures integrated circuits using specialized process technologies.
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Growing market and price pressures
According to the SIA, global chip sales were $151.7 billion in the first quarter of 2022, up 23% year-on-year. Sales increased in all major regional markets and for all product categories. As global uncertainties, including the war in Ukraine and the health crisis, weigh on supply chains, demand for semiconductors continues to significantly outpace supply. Manufacturers Samsung and TSMC have announced that they will raise their prices, in a context where players in the sector have good leeway and benefit from increased bargaining power. However, wage increases and component prices could weigh on future performance.
Sector sheet – Electronics
Innovations are developing in connected health
At the last CES, innovations in health made a notable advance. Thanks to the operation of Artificial Intelligence, many objects measuring the constants of each and communicating in all rooms have been disclosed. Sensors are used to analyze urine, monitor nutrient or hormone levels. Other objects allow you to measure blood pressure, heart rate and other indicators by analyzing the face from a selfie. Products in the prevention niche are very promising, as are certain start-ups, such as the French company Withings. After its Body Scan, connected health station for the home, the company is preparing to market the first home urine analysis laboratory. It thus faces American giants like Apple on the prevention market.