Intel, which is reducing hundreds of jobs because it struggles to remain related within the chip business, offered its 1.18 million share stake in British chip agency Arm Holdings within the second quarter, a regulatory submitting confirmed on Tuesday.
Intel would have raised about $146.7 million (roughly Rs. 1,231 crore) from the sale, primarily based on the common value of Arm’s inventory between April and June, based on Reuters calculations.
The chipmaker mentioned earlier this month that it might lower greater than 15 p.c of its workforce and droop its dividend amid a pullback in spending on conventional knowledge middle semiconductors and a shift in the direction of AI chips, the place it lags rivals comparable to Nvidia.
Intel has mentioned it’s targeted on growing superior AI chips and constructing out its for-hire manufacturing capabilities, because it goals to recoup the technological edge misplaced to Taiwan’s TSMC, the world’s largest contract chipmaker.
The push to energise that contracting foundry enterprise beneath CEO Pat Gelsinger has elevated Intel’s prices and pressured revenue margins, forcing it to hunt price cuts.
Intel and ARM each declined to touch upon Tuesday when contacted by Reuters concerning the share sale.
“This seems to be according to the restructuring plan and the renewed deal with liquidity and effectivity that Gelsinger laid out from the final convention name,” mentioned Benchmark Co analyst Cody Acree.
Santa Clara, California-based Intel had money and money equivalents of $11.29 billion (roughly Rs. 94,769 crore), and whole present liabilities of about $32 billion (roughly Rs. 2,68,610 crore), as of finish June.
Intel inventory has misplaced greater than 59 p.c of its worth up to now this yr, slumping 26 p.c on August 2 after the corporate suspended its dividend. It was almost flat in prolonged buying and selling on Tuesday.
© Thomson Reuters 2024
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