The programmable chipmaker expects another year of double-digit growth as demand for AI and robotics applications accelerates ahead of its planned public listing.
Altera, the programmable chipmaker spun off from Intel, expects strong growth to continue as demand for artificial intelligence (AI) and robotics applications boosts sales of its field-programmable gate array (FPGA) chips, according to Reuters.
Chief Executive Raghib Hussain told Reuters the company is growing at around 20% annually and expects to more than double its operating income as it prepares for an eventual public listing. Altera became an independent company last year after Intel sold a 51% stake to Silver Lake for $4.46 billion, valuing the business at $8.75 billion, while Intel retained the remaining 49%.
“We have brought engineering very close to the customers, so that actually is showing up in our customer engagement,” Hussain said.
Hussain said AI servers increasingly require FPGA chips alongside graphics processors for connectivity, data pre-processing and sensor fusion. He described GPUs as the “brain” of AI systems, while FPGAs serve as the “nervous system,” mentioning that FPGA content worth $100 to several hundred dollars per robot could create a market valued between $100 billion and several hundred billion dollars over the next decade.
According to Reuters, Altera has decreased its dependence on Intel by reducing transition service agreements and is developing chips using advanced 2-nanometre and 3-nanometre process technologies at Taiwan Semiconductor Manufacturing Co. (TSMC), while continuing to manufacture products through Intel Foundry.
