Semiconductor-production equipment maker Tokyo Electron Ltd. is canceling its planned merger with U.S.-based Applied Materials Inc., the industry leader, because of a dispute with the U.S. Justice Department.
The two companies now see no sign of resolving the dispute regarding the U.S. antitrust act, Tokyo Electron said Monday.
The manufacturer is "dissatisfied" with the U.S. department's merger screening approach, Tokyo Electron Chairman and President Tetsuro Higashi told a news conference.
The department unexpectedly treated products still under development as a factor affecting fair competition, Higashi said, without elaborating further.
"We will continue our cooperative relations with Applied and consider strategies for technology development and other operations," he said.
Tokyo Electron and California-based Applied Materials announced in September 2013 a plan to merge in the second half of 2014 under a holding company to be set up in the Netherlands. But they repeatedly delayed the plan due to prolonged screening by antitrust authorities in the countries concerned.