Intel sells stake in UK chip designer Arm amid company-wide restructuring and cost cuts
Intel has sold its 1.18 million share stake in British chip firm Arm Holdings, according to a regulatory filing, as the California chip designer shores up its balance sheet amid intense competition.
The sale, disclosed on Tuesday, likely raised Intel nearly $147 million, based on Arm's average stock price between April and June.
Intel had cash and cash equivalents of $11.3 billion, and liabilities of about $32 billion at the end of June, according to its latest financials.
The divestment from Arm comes amid a tumultuous financial period for Intel, as it undergoes what CEO Pat Gelsinger has called "the most substantial restructuring of Intel since the memory microprocessor transition four decades ago."
At the start of August, Intel announced a $10 billion cost-reduction plan that will see it cut around 15,000 employees, eliminate its fiscal fourth-quarter dividend and reduce capital expenditures.
At the same time, Intel had reported worse-than-expected quarterly results and issued a light guidance for the current period. The results were followed bythe largest single day drop in Intel's stock price in 50 years, down 26%.
The chip firm, which both designs its own chips as well as manufactures them, has been struggling to keep up with other semiconductor competitors amid intensifying competition due to the AI boom.
According to Gelsinger, the company's latest losses were compounded by its decision to more rapidly produce its Core Ultra PC chips which are build to handle AI workloads.
Competitors such as AMD and Qualcomm have also been racing to roll out more AI-focused chips, chasing the success of Nvidia.
Under Gelsinger, the company is also looking to grow its struggling chip foundry business, and wrestle back market share