Wednesday, August 14th 2024
Intel Parts Ways with Arm Holdings, Sells Entire Stake
As Intel's recent challenges continue, the company just sold its 1.18 million share stake in Arm Holdings during Q2, as revealed in a recent regulatory filing, according to Reuters. The sale potentially generated around $146.7 million for Intel, based on Arm's average stock price between April and June. The company recently announced plans to reduce its workforce by over 15% (about 15,000 jobs) and suspend dividend payments, reflecting a downturn in traditional data center semiconductor demand and a shift towards AI chips, a sector where Intel trails competitors like NVIDIA.
CEO Pat Gelsinger is steering Intel towards developing advanced AI chips and expanding its contract manufacturing capabilities, aiming to regain ground lost to Taiwan's TSMC, the industry's leading contract chipmaker. This strategic pivot has increased costs and squeezed profit margins, necessitating cost-cutting measures.When approached by Reuters, both Intel and Arm declined to comment on the share sale. As of June's end, Intel reported cash and equivalents of $11.29 billion, with total current liabilities around $32 billion. The company's stock has declined by over 59% year-to-date, with a sharp 26% drop on August 2 following the dividend suspension announcement.
Intel kept its investments in some companies like Astera Labs, Joby Aviation, MariaDB, and Senti Biosciences, even though it sold its Arm shares. However, these investments aren't doing well right now. In the second quarter of the year, Intel lost about $120 million on these investments combined.
Sources:
Reuters, TrendForce
CEO Pat Gelsinger is steering Intel towards developing advanced AI chips and expanding its contract manufacturing capabilities, aiming to regain ground lost to Taiwan's TSMC, the industry's leading contract chipmaker. This strategic pivot has increased costs and squeezed profit margins, necessitating cost-cutting measures.When approached by Reuters, both Intel and Arm declined to comment on the share sale. As of June's end, Intel reported cash and equivalents of $11.29 billion, with total current liabilities around $32 billion. The company's stock has declined by over 59% year-to-date, with a sharp 26% drop on August 2 following the dividend suspension announcement.
Intel kept its investments in some companies like Astera Labs, Joby Aviation, MariaDB, and Senti Biosciences, even though it sold its Arm shares. However, these investments aren't doing well right now. In the second quarter of the year, Intel lost about $120 million on these investments combined.
41 Comments on Intel Parts Ways with Arm Holdings, Sells Entire Stake
Quite an achievement and certainly an example of dedication and quality right there. Maybe Intel should buy Trendforce, this way they never have delays. Or maybe its a small jab at Intel's progress :)
Intel is hoping to manufacture Arm-based server chips one day. And they have just lost access to financial and other information that shareholders have but the general public does not. These two things may not be directly related but there must still be some benefit to getting more information, right? Unless Intel kept one share, that is. Possibly, and hopefully their timelines are more specific than your wording here. :p
Either way, it is a true chess move and all that remains is to see if the gambit pays off
Here is a Short List:
- Itanium - cancelled / a complete disaster
- XScale ( ARM-based RISC architecture ) - sold to Marvel Technology Group ( mistake! )
- A line of smartphones with Intel CPUs - Stopped manufacturing / Intel could use XScale ( ARM-based RISC architecture instead of Intel processors using CISC architecture )
- Intel Xeon Phi - cancelled / a complete disaster / used Atom-based cores instead of Ivy Bridge-based cores ( mistake! ) / Worked on a project using an Intel Xeon Phi server and exceeded its capabilities in about 4 weeks
- A series of Many Integrated Core processors - cancelled ( these processors were Too expensive compared to NVIDIA GPUs )
- Purchased Altera ( FPGA technology ) to compete with AMD since it purchased Xilinx
- Sold Altera - failed to compete with AMD-Xilinx
- A complete disaster with process technologies smaller than 14 nm / process "chaos", like 14 nm, then 14+ nm, then 14++ nm, then 14+++ nm, then 14++++ nm, and so on
- RISC-V technology - cancelled ( mistake! )
- Inability to scale up and port Almost Perfect Integrated GPU technology to Discrete GPU technology in order to compete with NVIDIA and AMD GPUs for Data Centers
- OneAPI architecture - already over-complicated and will be cancelled in the future
Entire Memory business being sold off to SKHynix
IMFT dissolved
minor disasters regarding instabilty of NICs
Yes. Google/Alphabet.
killedbygoogle.com/
and this is just the list from 2015 on here's a link to the full list of them pissing away money that should have gone to foundry and their core mission en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Intel