The IoT group is one of three focus areas for INTC, which is transitioning from a PC-focused business to one that powers ubiquitous computing as more and more devices become intelligent and connected.
INTC also says it is forming an automated driving unit that will develop chips and other technology related to self-driving cars and driver-assistance systems, to be led by Douglas Davis, a senior VP who has been running the IoT group and had previously announced plans to retire.
ARM Holdings (ARMH +0.5%) is up around 40% and SoftBank Group (OTCPK:SFTBY -1.7%) around 15% since the deal was disclosed. The move marks the end of an era for one of the UK's foremost technology companies.
The chip sector is hot but no name is hotter than Advanced Micro Devices (AMD +10.9%). The company has been gradually rising since last August and has really hit its stride since returning to Y/Y revenue growth for the first time since 2014 in Q2.
The only company remotely in the ballpark of this type of growth is Nvidia (NVDA +0.4%) with a now 170% increase over the last year.
Comparably, Intel Corporation (INTC +0.5%) is up slightly over 23%, Micron Technology (MU +3.7%) around 2%, Applied Materials (AMAT +6.7%) nearly 80%, Analog Devices (ADI +0.4%) around 10%, ARM Holdings (ARMH -0.8%) around 56%, Linear Technology (LLTC +0.1%) around 46%, NXP Semiconductors (NXPI +1.2%) around 2%, Marvell Technology (MRVL +3.9%) slightly over 1%, Qualcomm (QCOM -0.4%) around 2.5%, Broadcom (AVGO +0.5%) around 26% and Texas Instruments (TXN +0.3%) around 43% for the same period.
Advanced Micro Devices shares continues to increase following this week's operational-reveal of the company's highly anticipated Zen-core processors.
Intel's (NASDAQ:INTC) foundries will grant external parties access to its 10-nanometer production lines to fabricate Arm-based (NASDAQ:ARMH) semiconductors.
LG Electronics (OTC:LGEAF) will use the arrangement to produce mobile-phone components.
With this development, Intel's manufacturing segment appears open to additional partnerships with companies looking to outsource semiconductor production. Apple and Qualcomm, for example, currently contract with Taiwan Semiconductor Manufacturing Company (NYSE:TSM) along with other manufacturers and could potentially look to Intel's setup at some point in the future.