Connecting to LinkedIn...



Chip designer bought by Intel

4/06/2015 by Ben Gibbs


Intel, one of the world’s leading electronics giants, has acquired chip designer Altera. In the deal, which is reported to be worth approximately $16.7bn (£10.9bn), Intel will use the chips to widen the number of devices it powers, including smart cars and products within the cloud computing arena.

The latest deal is the largest acquisition in Intel’s 47-year history. In an industry where cost cutting is a key priority as sales continue to remain lacklustre, Intel’s move is savvy. With the sale of personal computers dwindling as customers turn to tablets and smartphones instead, companies such as Intel have to look to other revenue-making avenues.

A relationship between Altera and Intel already exists, with the electronics manufacturer utilising the chip company for several high-end products; however, Brian Krzanich, Intel’s chief executive, said that Intel will be able to completely integrate the chips into the design and production development by owning the company, which will lower costs whilst improving products.

Tony Cherin, one of San Diego State University’s finance professors, said: “Their PC chip business is going downhill, and so here's a way to bolster their earnings by getting into a different type of business.” He added that a plethora of deals in the chip industry could actually have a negative effect for consumers; for example, with smaller companies being acquired by industry leaders, competition could dwindle and ultimately make electronics more expensive.

Intel is currently the world’s largest PC chip manufacturer and it also dominates the server chip market; however, Gartner analyst Mark Hung expressed that Intel only has limited offerings of communication chips. These chips power data from mobile device to servers and this market is gaining thanks to the increased use of tablets and gadgets. By acquiring Altera, Intel has managed to strengthen its position in the server chip industry.

Patrick Moorhead, a tech analyst, explained that Altera’s chips can be configured for a variety of functions; in addition, they are ready for market far quicker than many of the traditional chips that Intel deals with. “What Intel is doing is finding ways to accelerate cloud applications. There wouldn't be a Facebook or Twitter or your smartphone without these monster data centres behind them,” Mr Moorhead added.

With the cloud computing market continuing to grow, it is unsurprising that third-party giants are taking notice. For Intel, the potential advantages of offering chips to help power the cloud could be enormous.

This article has been written by Montash, if you have any further queries please contact us on: +44 (0)20 7014 0233 or alternatively send us an email on

About Us

Montash is a multi-award winning global technology recruitment business. Specialising in permanent and contract positions across mid-senior appointments across a wide range of industry sectors and IT functions, including:

ERP Recruitment, BI & Data Recruitment, Information Security Recruitment, Enterprise Architecture & Strategy Recruitment , Energy Technology Recruitment, Demand IT and Business Engagement Recruitment, Digital and E-commerce Recruitment, Leadership Talent, Infrastructure and Service Delivery Recruitment, Project and Programme Delivery Recruitment.

Montash is headquartered in Old Street, London, in the heart of the technology hub. Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid management in permanent and contract roles.

comments powered by Disqus

Social Stream

Latest News


UK threatened by serious cyber attacks every ...

2017-02-15 16:00:00 +0000

The security of the UK has been threatened by 188 serious cyber attacks in the last three months, a government security chief has said. National Cyber Security Centre (NCSC) Chief Executive Ciaran Martin told The Sunday Times that national security was put at risk by many of these attacks. Martin was speaking ahead of the official opening of the NCSC, which has been set up to protect critical services in the UK from such attacks and improve underlying i...


British cyber security workforce rises 163%

2017-02-08 10:00:00 +0000

Data from the UK has shown that the cyber security workforce has grown considerably over the past five years. According to a new report from cyber skills promotion network Tech Partnership, there are now 58,000 more workers in this industry – a rise of 163 per cent. It shows the growing importance of these professionals, with firms across a vast range of industries turning to cyber security specialists to safeguard their data. To collate the report, the...