Intel, which is cutting thousands of jobs in a bid to stay relevant in the chip industry, sold its 1.18 million-share stake in British chip company Arm Holdings in the second quarter, a regulatory filing showed on Tuesday.
According to Reuters calculations, Intel would have raised about $146.7 million (about Rs 1,231 crore) from the sale, based on Arm’s average share price between April and June.
The chipmaker announced earlier this month that it would lay off more than 15 percent of its workforce and suspend its dividend due to a drop in spending on traditional data center semiconductors and a shift to AI chips, where it has lagged rivals like Nvidia.
Intel has said it is focusing on developing advanced AI chips and expanding its manufacturing capabilities for third parties, hoping to regain the technological lead it lost to Taiwan’s TSMC, the world’s largest contract chipmaker.
The push to revive its contract foundry business under CEO Pat Gelsinger has pushed up Intel’s costs and squeezed profit margins, forcing Intel to cut costs.
Intel and ARM declined to comment Tuesday when contacted by Reuters about the share sale.
“This appears to be consistent with the restructuring plan and renewed focus on liquidity and efficiency that Gelsinger outlined in the last conference call,” said Cody Acree, an analyst at Benchmark Co.
Intel, based in Santa Clara, California, had cash position of $11.29 billion (approximately Rs 94,769 crore) and total current liabilities of about $32 billion (approximately Rs 2,68,610 crore) at the end of June.
Intel shares have lost more than 59 percent of their value so far this year, falling 26 percent on Aug. 2 after the company suspended its dividend. It was nearly flat in extended trading on Tuesday.
© Thomson Reuters 2024
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
