Intel, which is cutting thousands of jobs as it struggles to stay relevant in the chip industry, sold its 1.18 million-share stake in British chip firm ARM Holdings in the second quarter, a regulatory filing showed on Tuesday.
Intel would have raised about US$146.7-million from the sale, based on the average price of ARM’s stock between April and June.
The chip maker said earlier this month that it would cut more than 15% of its workforce and suspend its dividend amid a pullback in spending on traditional data centre semiconductors and a shift towards AI chips, where it lags rivals such as Nvidia.
Intel has said it is focused on developing advanced AI chips and building out its for-hire manufacturing capabilities as it aims to recoup the technological edge lost to Taiwan’s TSMC, the world’s largest contract chip maker.
The push to energise that contracting foundry business under CEO Pat Gelsinger has increased Intel’s costs and pressured profit margins, forcing it to seek cost cuts. Intel and ARM both declined to comment on Tuesday when contacted about the share sale.
“This looks to be consistent with the restructuring plan and the renewed focus on liquidity and efficiency that Gelsinger laid out from the last conference call,” said Benchmark Co analyst Cody Acree.
Under pressure
Santa Clara, California-based Intel had cash and cash equivalents of $11.3-billion, and total current liabilities of about $32-billion, as of end June.
Intel stock has lost more than 59% of its value so far this year, slumping 26% on 2 August after the company suspended its dividend. It was nearly flat in extended trading on Tuesday. — Jaspreet Singh and Juby Babu, with Max Cherney, (c) 2024 Reuters
