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Author: Admin | 2025-04-27
Intel INTC recently stated its plans to acquire eASIC. Santa Clara, CA-based eASIC is a small company which specializes in customized chip-making technology and has a experience of 19 years in the field. The financial terms were reportedly almost insignificant to the tech giant to be disclosed.Custom-made chips are more efficient but cannot be modified for other purposes. Intel’s move to acquire eASIC holds promise in the long haul considering its ambitions of creating a unique and new technology which takes into account both efficiency and flexibility.Post acquisition, eASIC team will join the chipmaker’s Programmable Solutions Group (“PSG”). eASIC’s structured ASICs (application-specific integrated circuit) microchips will add considerable depth to Intel’s programmable solutions portfolio. Improving time-to-market, advanced features and improved performance will be the other positives.Intel’s notable economies of scale will enable it to gain an edge in terms of cost, power and extended product life cycles of its offerings.The acquisition is expected to conclude in the third quarter of 2018, after clearing the customary regulations.Notably, Intel’s stock has returned 54.9% in the past year, outperforming the industry’s rally of 52.1%. Intel’s bid to enable customers unlock the power of data is a key catalyst.Is the Addition of eASIC to PSG Division a Masterstroke?The customers are increasingly handling workloads either over the cloud, Internet of Things (“IoT”), 4G/5G wireless networks, among other emerging platforms. This calls for designing power constrained and high performance applications solutions which customized ASICs offer.Moreover, robust adoption of FPGAs (field-programmable gate arrays) is eventually easing the migration to structured ASICs. Considering the rapid shift to structured ASICs, the company also targets to offer a cost-effective solution that automates the conversion process.In the longer haul, Intel aims to develop advanced programmable chips which “no one on the marketplace” offers. The new class of chips will leverage the company’s Embedded Multi-Die Interconnect Bridge (“EMIB”) technology. The new chips will combine Intel’s FPGAs with eASIC’s structured ASICs in a system to be offered as a package solution.PSG Segment AnalysisPSG accounted for 3.1% of total revenues in first-quarter 2018. PSG unit started with the $16.5 billion Altera acquisition which the
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