While Altera FPGA aren't as fast as Intel's own Xeon processors, they are more flexible and are used in a number of industries including consumer electronics, telecommunications, and automotive. By securing Altera, Intel can step into IoT applications.Industry analysts believe that Avago's purchase of Broadcom may have propelled Intel to make a second attempt at Altera.
These are some key factors which may have influenced Intel's decision to purchase Altera.
1) Altera FPGA will be used in Intel's processor chips. The purchase allows Intel to enter the SoC market.
Some analysts feel that the price tag of $17 billion was overvalued, but Intel defended its to buy Altera FPGA stating that they allow for faster speeds in Intel's processor chips.
2) Intel's purchase of Altera has a negative impact on its competitors, including IBM and ARM. IBM and ARM will need to rely on another FPGA source - such as Xilinx FPGA, Microsemi or Lattice Semiconductor.
3) Intel has the opportunity to reach out to other markets.
Avago's purchase of Broadcom has propelled Qualcomm to consider other new opportunities. Qualcomm's reach into the mobile chip market is severely limited by the consolidation between the two companies. Both Avago and Intel have mutual interests in the mobile chip market, and industry analysts believe that a partnership between Qualcomm and Intel is a viable step.
1) Altera FPGA will be used in Intel's processor chips. The purchase allows Intel to enter the SoC market.
Some analysts feel that the price tag of $17 billion was overvalued, but Intel defended its to buy Altera FPGA stating that they allow for faster speeds in Intel's processor chips.
2) Intel's purchase of Altera has a negative impact on its competitors, including IBM and ARM. IBM and ARM will need to rely on another FPGA source - such as Xilinx FPGA, Microsemi or Lattice Semiconductor.
3) Intel has the opportunity to reach out to other markets.
Avago's purchase of Broadcom has propelled Qualcomm to consider other new opportunities. Qualcomm's reach into the mobile chip market is severely limited by the consolidation between the two companies. Both Avago and Intel have mutual interests in the mobile chip market, and industry analysts believe that a partnership between Qualcomm and Intel is a viable step.
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