Intel has confirmed reports that it will acquire Altera in a deal worth approximately $16.7 billion (£10 million).
The acquisition will see Intel develop new classes of products that meet customer needs in the data center and Internet of Things (IoT) market.
Using Moore’s Law, Intel plans on offering Altera’s field-programmable gate array (FPGA) technology products with Intel Xeon processors as customisable products.
Brian Krzanich, CEO of Intel, said: “With this acquisition, we will harness the power of Moore’s Law to make the next generation of solutions not just better, but able to do more.
“Whether to enable new growth in the network, large cloud data centers or IoT segments, our customers expect better performance at lower costs. This is the promise of Moore’s Law and it’s the innovation enabled by Intel and Altera joining forces. We look forward to working with the talented team at Altera to deliver this value to our customers and stockholders.”
Altera currently produces chips for field programmable gate arrays (FPGAs), which can be programmed for different functions.
Talks between the two companies were first recorded back in March, and the acquisition price is 56 per cent higher than the one discussed in March.
The acquisition would be one of its biggest purchases in the company’s history and would help to keep Intel’s factories full.
This news comes after Intel hosted a Future Showcase event, where the company celebrated 50 years of Moore’s Law and revealed a range of new future devices.