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Intel in talks with Altera on tie-up
[NEW YORK] US tech giant Intel is in talks with rival Altera on a tie-up to broaden the chipmaker's product line amid growth in Internet-connected devices, the Wall Street Journal reported Friday.
The Journal said such a deal for Altera, with a market capitalization of US$10.4 billion before Friday, would be Intel's largest acquisition ever.
Altera, which designs processors for phone networks, cars and other devices, would help Intel diversify its product line amid slumping demand for personal computers.
Based in San Jose, California - a short distance from Intel's Santa Clara home - Altera had revenues in the past year of US$1.9 billion and employs some 3,000 people worldwide.
Intel, the longtime leader in semiconductors for personal computers, has been shifting its focus to mobile devices and connected objects, including a recently announced heart monitor which is incorporated in audio headphones.
Altera shares jumped 28 per cent on the news to US$44.39, pushing its market valuation to some US$13 billion.
Intel shares gained 6.4 per cent to US$32.