PAT GELSINGER

Intel is terminating a $5.4 billion agreement to acquire Israeli chip manufacturer Tower Semiconductor after China failed to sign off on the deal amid deteriorating US-China relations.

Intel and the German government have signed a deal that would see the U.S. company investing more than 30 billion euros ($32.8 billion) in a chip manufacturing site in the German city of Magdeburg, with financial support from Berlin.

The risks to the global economy are leading to an increasingly gloomy view of the months ahead for corporate leaders, government officials and other VIPs gathered at the World Economic Forum meeting in Davos, Switzerland.

U.S. chipmaker Intel unveiled plans on Tuesday to invest up to $88 billion across Europe as part of an ambitious expansion aimed at evening out imbalances in the global semiconductor supply chain.

Intel said it is buying Israeli company Tower Semiconductor for $5.4 billion in a deal that could give the California chipmaking giant an edge in the business of making custom-designed chips.

Intel is expanding its manufacturing operation in Malaysia as chipmakers work to diversify global supply chains that were hit hard by the COVID-19 pandemic.

Samsung said it plans to build a $17 billion semiconductor factory in Texas amid a global shortage of chips used in phones, laptops, cars and other electronic devices.

FILE - In this Oct. 1, 2019, file photo the symbol for Intel appears on a screen at the Nasdaq MarketSite, in New York. (AP Photo/Richard Drew, File)BOSTON – The computer chipmaker Intel Corp. on Friday blamed an internal error for a data leak that prompted it to release a quarterly earnings report early. The company’s quarterly results were originally scheduled to be published hours later after the close of trading on Wall Street Thursday. It quoted an unnamed company spokesperson as saying Intel was notified that the graphic was circulating outside the company. Intel’s network was not compromised and we have adjusted our process to prevent this in the future.”The company's stock price closed down more than 9% Friday.

(AP Photo/Richard Drew, File)Intel is replacing its CEO after only two years in what had been a rough stretch for the chipmaker. Bob Swan, who became the company's chief executive in early 2019, will be replaced in mid-February by tech industry veteran Pat Gelsinger. Apple also dealt a blow to Intel last year when it began replacing Intel processors with Apple-designed chips on new Mac computers. He spent most of that time with Intel Corp., where he began his career and was its first chief technology officer. After a search, Intel confirmed Swan as CEO in early 2019.