Menu
The first fruits of Intel's biggest buy ever will come this quarter

The first fruits of Intel's biggest buy ever will come this quarter

The first chips that combine Intel and Altera components will ship in the first quarter

Intel welcomed employees from its massive Altera acquisition this week, and the first products from the deal will come out this quarter.

The chipmaker poured out $US16.7 billion to buy Altera, which makes FPGAs field programmable gate arrays [FPGAs}, or chips that can be reprogrammed for specific tasks. The first chip that combines Intel and Altera technology will go into servers, cars, robots, the Internet of Things, automation equipment and other products, Intel says.

Intel will start shipping its first server chips with Altera's FPGAs to select "leading-edge" Cloud customers this quarter, Intel CEO Brian Krzanich said during an earnings call on Thursday.

The products will be multi-chip modules, in which Intel's server chips and Altera FPGAs will be separate processing units. The modules are scheduled for mass production next year.

The ability to reprogram Altera FPGAs will make it easier for Intel to create custom chips, which Krzanich said are accounting for a larger chunk of server chip shipments.

Intel is also working to integrate Altera's intellectual property inside its own silicon, improving performance and power efficiency, Krzanich said. He gave no release date for those chips.

Intel had already announced its intention to provide server chips with Altera FPGAs. It hadn't clearly stated plans for Altera IP in its own chips until now.

The Intel-Altera product roadmap was announced during an earnings call for the fourth quarter of 2015, which ended on December 26. The acquisition of Altera, which closed on December 28, will boost revenue in fiscal 2016, Intel officials said.

The purchase is also part of Intel's effort to pivot into other areas as the PC market weakens. The memory, data center and Internet of Things divisions generated 40 percent of Intel's revenue in fiscal 2015, and that share will grow in 2016, Krzanich said.

Altera will be part of a new group called Programmable Solutions Group, which will report to Krzanich. It'll be much like Intel's Security Group, which was created after the McAfee acquisition.

Intel posted revenue of $US14.9 billion for the fourth quarter of 2015, growing by 1 per cent from the same quarter in 2014. Its profit was $US3.6 billion, down by 1 per cent.

Revenue for the Client Computing Group, which deals in PC and mobile chips, was $US8.8 billion, declining by 1 per cent year-over-year. The Data Center Group recorded revenue of $US4.3 billion, up by 5 per cent. Revenue for the IoT group grew by 6 per cent to $US625 million.


Follow Us

Join the newsletter!

Or
Error: Please check your email address.

Featured

Slideshows

Bumper channel crowd kicks off first After Hours of 2018

Bumper channel crowd kicks off first After Hours of 2018

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Jefferson in Auckland to kick-start 2018. Photos by Gino Demeer.

Bumper channel crowd kicks off first After Hours of 2018
Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Show Comments