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.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Father’s Day Gift Guide

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?