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Intel has sold all of its shares in chip design company Arm, according to regulatory documents filed on August 13, a move expected to raise about $147 million for Intel.

The documents show that as of the end of June 2024, Intel no longer held the 1.18 million Arm shares recorded three months ago, and its shareholding fell to zero.

However, the document did not clearly indicate when Intel sold these shares. Based on the average price of Arm stock of US$124.34 during the same period, Intel's profit from the sale of shares was approximately US$147 million.

In early August, Intel released one of the worst financial reports in its 56-year history, causing its stock price to plummet. As a self-rescue measure, the company announced plans to lay off 15,000 employees and cut other expenses, while suspending dividends.

The financial report shows that Intel's second-quarter performance data all fell short of expectations, and it gave disappointing third-quarter performance guidance due to reduced spending on traditional data center chips and the market's focus on artificial intelligence chips, in which Intel lags behind its competitors.

As of the end of June, Intel had cash and cash equivalents of $11.29 billion and total current liabilities of about $32 billion.

To get back on track, Intel said it would lay off more than 15% of its employees as part of a $10 billion cost-cutting plan. The company also said it would suspend dividends from the fourth quarter of 2024 and reduce full-year capital expenditures by more than 20%. It is worth noting that Intel has been paying dividends since 1992, and this is the first time it has suspended dividends in the past 32 years.

It’s worth noting, however, that while the sale of Arm shares may have brought in a windfall, the company still reported a net loss of $120 million on equity investments during the period.

Arm now licenses chip designs and layouts to the entire semiconductor industry, including Intel. Previously, Intel produced most of its chips based on internal designs. But those products have fallen behind those of competitors, many of which use Arm products.

After being acquired by SoftBank Group in 2016, Arm went public again in September last year and had the largest initial public offering of the year last year. Its majority stake is currently held by Japan's SoftBank Group.

As of the close of August 31, Arm's stock price had fallen by more than 30% from early July, with a current market value of $129.7 billion, while Intel's market value is $87.5 billion.

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