Intelâ€™s Acquisition of Altera can Help the Chipmaker to Penetrate Other Sectors
Published By : 01 Apr 2015 | Published By : QYRESEARCH
Wall Street is musing that the world’s largest maker of chips, Intel Corporation is planning to buy fellow chipmaker company called Altera Corp. This deal is anticipated to be worth US$10 billion, according to the sources. However, the terms and timing of the deal might not work out.
Currently, Intel is searching for new avenues of expansion in midst of the weaker sales of PC market. This situation has forced a billion dollar cut during the first quarter sales outlook previously this month. According to a market research agency, the global PC shipments might slump this year. Moreover, the growing demand for cheaper chips and innovative new products which power the internet connected gadgets is fueling the consolidation trend in this industry.
The acquisition of the chipmaker Altera will present new opportunities for Intel in the market for programmable computer chips. These chips are used in cellular networks, wireless radios, cars, and other products. But, as two thirds of Altera company’s revenue is generated from telecom, military or aerospace, and wireless industry, it will help Intel to diversity their revenue stream ahead of legacy computer markets. This opportunity will help Intel to expand into several markets such as industrial, automotive, and communications while strengthening its presence in data centers around the world.
This major deal if announced publicly will be the largest acquisition in the history of the company Intel and will be one of the biggest acquisitions in the technology industry in past few years. One of the recent most merger and acquisition deals announced in the space were NXP Semiconductors. This company agreed to merge with a smaller peer company called Freescale Semiconductor and HP which has aimed to acquire Aruba Networks, which is a Wi-Fi gear maker.