Performance Shock at Intel, Ultimately Sold All Shares of 'This Company'

Complete Sale of Arm Shares
Securing 200 Billion Won in Cash

Facing a crisis due to poor performance, U.S. semiconductor company Intel has sold all of its shares in semiconductor design firm Arm Holdings.

According to Bloomberg News on the 13th (local time), Intel disclosed in a filing submitted to the U.S. Securities and Exchange Commission (SEC) that it no longer holds the 1.18 million Arm shares it owned three months ago. This means Intel sold all its Arm shares in the second quarter.

Bloomberg estimated that based on the average second-quarter price of Arm shares at $124.34 per share, Intel secured approximately $147 million (about 200.1 billion KRW) from this stake sale.

Intel's sale of its Arm shares is analyzed as a decision to secure funds amid recent poor performance. Intel recently revealed its worst-ever results in the second-quarter earnings report, and its third-quarter earnings guidance fell significantly short of expectations. The company also announced cost-cutting measures including a 15% reduction in workforce and suspension of quarterly dividend payments. Additionally, the annual largest developer event, 'Intel Innovation 2024,' originally scheduled for September, has been postponed to 2025.

Once dominating the global semiconductor market, Intel is now being outpaced by competitors such as TSMC in foundry (semiconductor contract manufacturing) and Nvidia in artificial intelligence (AI) semiconductors. Cody Acree, a Benchmark analyst, explained, "This appears to be part of the restructuring, liquidity, and efficiency plans CEO Pat Gelsinger outlined during the conference call."