Intel Enters IoT Arena with Largest Acquisition to Date
Renowned global leader in computing innovation Intel Corporation has demonstrated its intent to enter the IoT market, by reportedly agreeing a deal to buy specialist computer chip designer Altera, for around $16.7billion.
This transaction underlines the potential that is currently being associated with IoT solutions, as it would represent Intel's largest acquisition to date.
Intel claims that by combining its computer chips and manufacturing processes with Altera's field-programmable gate array (FPGA) technology, it will be able to develop innovative new products to meet growing customer needs in the data centre and IoT market segments.
Intel plans to offer Altera's FPGA products, aligned with its Xeon processors, as highly customised, integrated products, and to improve Altera's offerings by applying Intel's design and manufacturing expertise to their development.
Altera's FPGAs can be re-programmed to handle specific tasks, and are primarily used by companies in the medical, automotive and industrial fields; industry verticals with some of the most relevant and prominent needs for IoT solutions.
"Intel's growth strategy is to expand our core assets into profitable, complementary market segments," said Brian Krzanich, CEO of Intel. "With this acquisition, we will harness the power of Moore's Law to make the next generation of solutions not just better, but able to do more. Whether to enable new growth in the network, large cloud data centres or IoT segments, our customers expect better performance at lower costs."
As a result of the agreement, Altera will become an Intel business unit, and will facilitate continuity of existing and new customer sales and support. Intel reportedly plans to continue support and development for Altera's ARM-based and power management product lines.
"Given our close partnership, we've seen first-hand the many benefits of our relationship with Intel, the world's largest semi-conductor company and a proven technology leader, and look forward to the many opportunities we will have together," said John Daane, President, CEO and Chairman of Altera. "We believe that as part of Intel we will be able to develop innovative FPGAs and system-on-chips for our customers in all market segments. Together, we expect to drive meaningful value for our customers, partners and employees around the world."