Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
EE Times-Asia > FPGAs/PLDs

Is the Intel-Altera fusion a good deal?

Posted: 31 Mar 2015 ?? ?Print Version ?Bookmark and Share

Keywords:x86? FPGA? PC market? acquisition?

A handful of smaller companies are licensing FPGA blocks, Wawrzyniak said. Intel also makes FPGAs for smaller firms such as Achronix and Tabula, which is closing its doors this month.

"Altera, along with Broadcom, has long been considered a likely acquisition target for Intel," said Ross Seymore, an analyst with Deutsche Bank, in a note late Friday.

"Given their foundry relationship at 14nm, Altera's need for leading edge technologies and Intel's expertise in process technologies, we think this makes as much strategic sense today as it has in the past," Seymore said. However, Intel's "$20 billion share repurchase plan announced last year seems to have decreased the likelihood of a deal of such scale, as Intel seemingly believed buying back its own stock a superior alternative," he added.

One Wall Street analyst speculated Intel might buy an FPGA company as far back as early 2010.

The reports of the Altera acquisition are the latest in a trend towards consolidation of the semiconductor industry following an announcement earlier this year of NXP's bid for Freescale Semiconductor.

"The recent rapid consolidation of the chip industry and the resurgence of integrated device manufacturers could put the foundry business model under threat," said Maybank Kim Eng Securities analyst Warren Lau in a report today. Samsung could be the next company on the acquisition trail given its ample war chest of $60 billion in cash, Lau said.

- Rick Merritt
??With a report from Alan Patterson in Taipei
??EE Times

?First Page?Previous Page 1???2

Article Comments - Is the Intel-Altera fusion a good de...
*? You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.

Back to Top