Weaker demand

Intel sells stake in chip company ARM

The US chip manufacturer Intel has sold its entire stake in the British chip company ARM. The ailing US chip giant sold its stake of 1.18 million shares in the second quarter, according to an official announcement published on Tuesday.

Both Intel and ARM initially declined a request for comment from Reuters. Based on ARM's average share price between April and June, Intel is likely to have raised around 146.7 million dollars from the sale, according to the news agency's calculations.

The move comes as part of extensive cost-cutting measures announced by Intel at the beginning of August. These include the reduction of more than 15 percent of the workforce and the suspension of dividend payments.

Intel is currently struggling with weaker demand for traditional chips for data centers and the trend towards AI processors, where the company is lagging behind competitors such as Nvidia. Intel shares have lost more than 59 percent of their value since the beginning of the year.