Chipmaker Intel has sold its 1.18 million share stake in British chip firm Arm Holdings, according to a regulatory filing. The sale, completed in the second quarter, raised approximately USD 146.7 million based on Arm’s average stock price during that period.
This move is part of an Intel’s broader strategy as it faces challenges in the competitive chip industry. Earlier this month, Intel announced it would cut more than 15 per cent of its workforce and suspend its dividend.
These decisions come as the company grapples with a slowdown in traditional data centre semiconductor spending and a shift toward artificial intelligence (AI) chips, where it trails behind competitors such as Nvidia. Intel is focusing on developing advanced AI chips and expanding its contract manufacturing capabilities to regain a technological edge over Taiwan’s TSMC, the largest contract chipmaker globally.
Under CEO Pat Gelsinger, Intel’s push to revitalise its foundry business has increased operational costs and pressured profit margins, leading to the need for substantial cost-cutting measures.
As of the end of June, Intel reported cash and cash equivalents of USD 11.29 billion against total current liabilities of approximately USD 32 billion. The company’s stock has seen a dramatic decline of over 59 per cent this year, with a sharp 26 per cent drop on 2 August following the dividend suspension. The stock remained relatively stable in extended trading on Tuesday.