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Intel (INTC.O), which is cutting thousands of jobs as it struggles to stay relevant in the chip industry, sold its 1.18 million share stake in British chip firm Arm Holdings in the second quarter, a regulatory filing showed on Tuesday.
The chipmaker would have raised about $146.7 million from the sale, based on the average price of Arm's stock between April and June.
Intel said earlier this month that it would cut more than 15% of its workforce and suspend its dividend amid a pullback in spending on traditional data centre semiconductors and a shift towards AI chips, where it lags behind rivals such as Nvidia.
Intel is concentrating on creating cutting-edge AI chips and expanding its contract manufacturing services, as it seeks to regain the technological advantage lost to Taiwan's TSMC, the world's leading contract chipmaker.
The effort to revitalise Intel's contract foundry business under CEO Pat Gelsinger has increased costs and squeezed profit margins, compelling the company to seek cost reductions.
Intel and ARM declined to comment on Tuesday when contacted by Reuters about the share sale.
Benchmark Co analyst Cody Acree said the move appeared to align with Intel's restructuring plan and renewed focus on liquidity and efficiency, as outlined by CEO Pat Gelsinger in the company's recent earnings call.
Intel, based in Santa Clara, California, had $11.29 billion in cash and cash equivalents, and total current liabilities of about $32 billion, as of the end of June.
Intel's stock has lost more than 59% of its value so far this year, plunging 26% on August 2 after the company suspended its dividend. The stock was nearly flat in extended trading on Tuesday.
