Intel is licensing patents in an effort to scrape some cash

Intel is licensing patents in an effort to make some cash

Intel has transferred more than 5,000 patents to the IPValue Intellectual Property Licensing Group.

It is clear that the deal will include inventions related to microprocessors, application processors, logical devices, computing systems, memory, storage, connectivity, communications, packaging, semiconductor engineering, design and manufacturing.

In a press release, IPValue said it will license the new wallet to both new and existing licensees.

New Intel strategy

Intel’s decision to license its portfolios via IPValue was likely motivated by the need to raise additional cash and create new revenue streams on the back of a disappointing quarter.

The chip giant’s revenue for the second quarter ($15.3 billion) fell 15% compared to its guidance, While its earnings of 29 cents per share were 41% lower than its own estimates.

Pat Gelsner attributed, CEO of Intel Corporation, Poor performance attributed to a “difficult macroeconomic climate”, Pointing fingers at widely known issues such as “inflation, higher interest rates, And the war in Ukraine.

This isn’t the first major intellectual property acquisition that IPValue has made. The company previously acquired semiconductor portfolios for a wide range of companies, Including Cypress Semiconductor, Elpida, UMC, and Seiko Epson.

The assets will be held in a separate, recently formed company within IPValue, It’s called Tahoe Research Limited.

In this case , The patents likely relate to less advanced Intel hardware, Instead of the technology that powers some of the best business laptops and business PCs.

Intel has been active in converting accumulated assets into cash in recent years. The chip giant offloaded its NAND flash and SSD business units to South Korean hardware company SK Hynix in a $9 billion deal in 2020, It also sold its smartphone modem business to Apple in 2019.

However , There is a lot for Intel investors to be optimistic about. The US Congress passed the Chips ACT, Which can provide up to $52 billion in financing for domestic semiconductor manufacturing, With a high probability that Intel will be the beneficiary.