Intel Acquires eASIC to Expand Beyond Declining CPU Chip Market

Intel has acquired eASIC, a small company specializing in customizable chips in order to diversify beyond CPU chips that are used primarily in personal computers. As consumers move more and more to using mobile phones over personal computers, demand for Intel’s base product, CPU chips, is declining.

eASIC’s 120 employees will join Intel’s programmable solutions group, which was created after Intel acquired chipmaker Altera Group for $16.7 billion in 2015. Intel is focused on building more chips that are smaller and more efficient for use in mobile phones and the Internet of Things, but not as expensive to create. The technology acquired with the eASIC deal will help bring Intel closer to this goal.

This transaction is about offering a new technology to the same customers. If you are familiar with the Opportunity Matrix, this transaction would be categorized as a “breadth” – offering a new technology or product to the same customers. Faced with a declining market, especially in the technology sector, acquiring can be one of the fastest ways to continue to remain relevant with customers rather than building your own solution. Intel still has some work to do to reduce its dependence on the CPU chip, but the eASIC deal puts the company one step closer to developing new technology.

As you consider your opportunities for growth, here are a few questions to ask:

  • Where is the market going?
  • What do your customers want today? In the future?
  • Are you able to fulfill their needs with your current product/service mix?
  • If not, what steps might you take to achieve this?
  • If you are able to fulfill their needs, how can you anticipate any future desires, to remain relevant and keep them engaged?

Whenever we take a look at the deals in the news, my hope is always that these transactions, even though they may differ from specific industry or situation, will spark some thoughts and excitement about growing your company.

Photo credit: Takuya Oikawa via Flickr CC BY-SA 2.0 

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