Intel, Altera Reportedly Resume Acquisition Talks
According to media reports that come more than a month after Altera rejected Intel's initial bid, the two sides could reach a resolution within weeks.Intel reportedly is back in talks with Altera about buying out the smaller semiconductor vendor more than a month after negotiations broke off when Altera rejected Intel's offer of $54 a share. According to reports in both CNBC and the New York Post, a resolution to the talks one way or the other could be reached relatively quickly, within a few weeks. Neither Intel nor Altera officials are commenting to journalists on the reports. Reports of Intel's interest in Altera began circulating earlier this year. Intel chips dominate the PC space, but as PC sales have slowed over the past several years in the wake of growing competition from smartphones and tablets, company executives have been pushing to extend the chip maker's reach into other growth areas, including mobile devices and data center systems—such as storage and networking—and the expanding Internet of things (IoT). At the same time, the vendor has been growing the capabilities in its server chips, including adding accelerators like GPUs and field-programmable gate arrays (FPGAs), which are becoming increasingly important in cloud and Web-scale environments. Altera makes FPGAs, which can be programmed through software and are becoming increasingly popular as accelerators that improve system performance while keeping power consumption down.
The two companies already work together, with Intel in 2013 announcing it would start manufacturing Altera's ARM-based quad-core Stratix 10 processors. A year later, the company extended the partnership to include multi-die devices, integrating Altera's FPGAs and systems-on-a-chip (SoCs) with other components—from memory to application-specific ICs to processors—into a single package.