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Intel Set To Splash Out US$17 Bill to Buy Altera

Intel Set To Splash Out US$17 Bill to Buy Altera

Computex which is a major technology trade show which is
held in Taiwan where a great deal of devices using Intel components are made.

Intel is a major sponsor and exhibitor at this show and the
decision to move on Altera is a big talking point as manufacturers look to
future processor partners for new IOT devices.

Intel who made their name delivering advanced processors for
servers and PC’s badly needs to break into markets Altera already has
customers, the acquisition will allow it to boost revenue and help defend a
crucial business.

Altera stockholders will receive about $54 a share, people
familiar with the matter said, this is the same price the company rejected in
April during an earlier round of talks with Intel.

The Wall Street Journal said that Intel’s bid continues a
consolidation wave in the semiconductor industry-a particularly active sector
for deal making of late in a red-hot year for mergers and acquisitions-as
companies search for new sources of revenue growth and target chip makers finding
it hard to boost profitability on their own.

Intel, the kingpin of processor chips, is expected to use
the smaller company’s line of programmable chips to get revenue growth amid a
slowdown in personal-computer demand that is crimping its own growth.

Altera’s business is also widely seen as a way for Intel to
protect its stronghold in chips for server systems, a market that generated
more than half of Intel’s operating profit in the quarter ended in March.
Companies have lately been using chips from Altera and rival Xilinx. to help
speed up their servers, and some analysts believe Intel needs to have an
internal source of the technology to respond to the trend.

 

The New York Post first reported late Thursday that Intel
and Altera had restarted talks.