Intel Has Finally Succeeded In Acquiring Altera
Intel has completed the acquisition of Altera for $16.7 billion
Intel Corporation has finally struck a massive deal where the company has completed its biggest acquisition ever. This acquisition was in compliance with Chief Executive Officer Brian Krzanich’s plan to make use of new initiatives to expand the company’s business.
The company has acquired Altera Corp. for almost $16.7 billion making the company known for its microprocessors being used in computers. Intel will be made as the second largest manufacturer if chips that can be programmed even after they leave the factory vicinity. The chips by Altera are used in several devices that encompass networking equipment, a genre that Intel has just decided to target.
However, Intel now is more devoted to serve the tech giants such Microsoft Corporation, Facebook Inc. and Google Inc. that are dependent on INTC’s Xeon processor. It is now become extremely difficult to cope up with the needs due to the company’s conventional practice of having more transistors present on a single silicon chip.
Tech companies like Microsoft want fast performance to cope up for tasks such as web based services by testing the Intel processors that are augmented with chips being retailed by Altera termed as FPGAs- in simpler words field programmable gate arrays. The top most priority of Intel after getting done with Altera deal is to get done with the concept.
The Vice President of Intel, Mr. Wendell Brooks is taking care of the mergers and acquisitions believe that the first initiative can actually churn in 30% to 50% improvement in terms of speed for its processors and the FPGAs separately. By linking both the functionalities that will not happen till 2016 resulting in making the performance two times better as stated. According to him the combination will result in massive benefits for works like facial recognition which will require computers to go “through hundreds of millions of images to find matches.”
Intel is betting on its production based technology that can assist in offering integrated products and services to the industry at a fast pace. Likewise it also wishes to improve the Apple products and with it aim of luring in sales from its rival Xinlinx Inc., “The biggest impact of the deal is the way Intel can bring its manufacturing process to the FPGA business,” claimed Mr. Mark Hung, who is an analyst at Gartner Inc.
Hence the company’s acquisition is massive but will help them to gain a huge market share in the long run and making a mark in the industry.
