U.S Chip manufacturer Intel on Wednesday said it has ended its plans to acquire Israeli contract chipmaker Tower Semiconductor.

The firm said this was its inability to get timely regulatory approvals for the $5.4 billion deal.

According to a statement by Intel, which signed a deal to buy Tower in 2022, it will pay a termination fee of $353 million to the Israeli firm.

Intel, however, did not mention the details about the regulatory approvals.

It was gathered that the American chipmaker did not secure approval from Chinese regulators for the acquisition on time as required under the contract.