Intel previously held 1.18 million shares in Arm
A recent SEC filing shows that Intel sold its stake in British chip firm Arm Holdings in Q2. The news comes amid the massive job cuts taking place at the company, signaling a larger shakeup within the company as it struggles to keep pace with competitors like AMD and Qualcomm in the current semiconductor climate.
Intel held 1.18 million shares in Arm and according to Reuters calculations, it would have raised about $146.7 million from the sale. Reuters also reported not long ago that Intel is cutting more than 15% of its workforce and suspended its dividend recently — a decision that saw its stock fall 26% — as the company looks to reduce spending in traditional data center semiconductors in favor of the development of AI chips, as well as expanding its for-hire manufacturing capabilities.
While Intel is lagging behind rivals — Qualcomm, for instance, has announced several products for what it calls “on-device AI” — the company is in line to receive as much as $8.5 billion in US government funding thanks to the CHIPS and Science Act. Intel may be also awarded up to $11 billion in loans, and will be able to claim federal tax credits that could cover as much as 25% of the expense of its U.S. expansion projects. When this funding was announced earlier this year, Intel said it expects to invest more than $100 billion in the U.S. over five years with expansions expected in in Arizona, New Mexico, Ohio and Oregon.
In addition to selling its stake in Arm, Intel has also zeroed out its investment in cybersecurity company ZeroFox and reduced its involvement with enterprise connectivity solutions developer Astera Labs.
