Tower Semiconductor rises amid China OK of Silicon Motion/MaxLinear (update)
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Update 11:55am: Adds details about China approving MaxLinear's purchase of Silicon Motion. 
Tower Semiconductor (NASDAQ:TSEM) rose 6.4% Wednesday as China approved MaxLinear's (MXL) planned $3.8 billion purchase of Silicon Motion (SIMO).
Tower Semi (TSEM) is largely gaining in sympathy with Silicon Motion (SIMO), which surged 78% on Wednesday after China's antitrust authority gave conditional approval for its planned sale to MaxLinear (MXL). Some investors believe China's blessing of the SIMO deal may mean that the regulator may also approve TSEM's $5.2 billion sale to Intel (NASDAQ:INTC).
Separately, Tower Semi reported Q2 adj EPS of $0.46 vs est. of 49c and revenue of $357.19M (-16.2% Y/Y) beats by $2.76M.
Gross profit stood at $87M, down from the year-ago $112M.
Operating profit was $51M, compared to $71M a year ago.
Tower Semi (TSEM) rose 3.2% on July 11 amid reports that Intel (INTC) CEO Pat Gelsinger was in China this month at least partly in an effort to convince Chinese regulators to approve the deal. The visit, Gelsinger's second in recent months, come as a termination deadline for the deal is approaching on August 15.
The company repaid $10M of its debt during the quarter.
The company said that it is not providing revenue guidance for Q3, in light of the definitive agreement with Intel (INTC).
Intel (INTC) is set to report its Q2 results on Thursday after the market close.
--With reporting by Josh Fineman
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