San Francisco, Aug 16 (IANS): Chip maker Intel to pay $353 million as a fine to Tower Semiconductor as the company on Wednesday announced to terminate its previously disclosed agreement to acquire Tower due to the inability to obtain in a timely manner the regulatory approvals required under the merger agreement.

"In accordance with the terms of the merger agreement and in connection with its termination, Intel will pay a termination fee of $353 million to Tower," Intel said.

In February last year, the chip maker announced it was planning to purchase the Israeli company for $5.4 billion.

“We are executing well on our roadmap to regain transistor performance and power performance leadership by 2025, building momentum with customers and the broader ecosystem and investing to deliver the geographically diverse and resilient manufacturing footprint the world needs. Our respect for Tower has only grown through this process, and we will continue to look for opportunities to work together in the future,” Pat Gelsinger, CEO of Intel, said in a statement.

Moreover, the company said that Intel continues to advance plans to create a world-class system foundry as part of its IDM (integrated device manufacturing) 2.0 strategy.

“Our foundry efforts are critical to unlocking the full potential of IDM 2.0, and we continue to drive forward on all facets of our strategy,” Gelsinger said.

Meanwhile, Dell Technologies and chip maker Intel have announced their partnership to launch artificial intelligence (AI) lab in India.

Dell and Intel's Digital Readiness team have partnered to enable Lords Institute of Engineering & Technology, Telangana in 'demystifying AI for the next-gen' by integrating Intel's 'AI for Youth' programme in their existing curriculum.

Through this partnership, the institute aims to enable students to be industry-ready and reduce their digital skills gap.