Intel Corp has officially announced that it has completed the acquisition of the startup named NetSpeed Systems Inc. The company was founded in 2011 with the primary goal of speeding up semiconductor design which later turned toward System-on-Chip(SoC) development. The SoC is actually an integrated circuit which is responsible for connecting the processor with all the essential components on the motherboard. A SoC is a relatively smaller chip than the ones usually used. Moreover, it also consumes less power making the motherboard energy-efficient. SoCs are used in almost all smaller devices such as smartphones, health devices and even on the autonomous vehicles.
The Motive Behind The Acquisition –
Intel is the leader in the chip-building industry. However, there are many companies that are fast becoming popular among various electronic devices. Intel aims to gain the required intellectual property and tap this market of SoC to be in a better position to compete in the future. NetSpeed already has a few products which are yet to be used on a large scale. Their product portfolio’s main selling point is their design tool named NocStudio. It is unique as it used artificial intelligence algorithms to speed up chip development like never before. NocStudio can automatically find the best possible way to enlist SoC specifications. Intel does not have this technology in place, and this is the main reason why Intel opted to buy the startup.
The Official Statements From Intel –
Intel said in a report that the acquisition would boost the speed of internal SoC development and reduce the cost of the production and the product. The co-founder of the startup, Sundari Mitra, will continue to lead her team in the role of the Vice President. However, the company will be merged with Intel’s Silicon Engineering Group whose CEO, Jim Keller, said that NetSpeed’s technology and design tool would solve the issue of time and cost in designing multiple products that already exist.
Intel’s innovation and production rate have increased significantly in the last few years owing to better competitors and more demands for various electronic devices with the digital revolution. They are indeed facing the problem of design time and expenses in production while maintaining the optimal performances Intel’s products are known for. In this scenario, the acquisition is believed to give the company an edge over others and hold on to their market share an even increase it in the future. The deal amount is expected to be around $60 million. Prior to the acquisition, NetSpeed raised $13.2millio from the investors.