Intel reportedly negotiating to acquire Israeli chipmaker
Should Intel complete the acquisition of Habana Labs, the deal would represent the company's second largest in Israel so far.
By EYTAN HALONThe logo of Intel, the world's largest chipmaker is seen at their offices in Jerusalem(photo credit: REUTERS)
American technology giant Intel Corp. is reportedly in advanced negotiations to acquire Israeli processor developer Habana Labs, according to Hebrew-language newspaper Calcalist.The proposed deal to acquire the Tel Aviv-headquartered start-up is reportedly valued to be worth between $1 billion and $2 billion, the financial daily reported on Tuesday.Founded by David Dahan and Ran Halutz in 2016, semiconductor manufacturer Habana Labs is the developer of powerful AI processors, optimized for training deep neural networks and artificial intelligence systems, and for deployment in production environments.In November 2018, Intel Capital – the strategic investment arm of Intel – led a $75 million Series B round of fundraising for Habana Labs.The company currently employs 150 people worldwide at its offices in Tel Aviv, Caesarea, California, Beijing and Gdańsk.Should Intel complete the acquisition of Habana Labs, the deal would represent the company’s second-largest in Israel so far.A spokesperson for Intel refused to comment on the report.In August 2017, Intel purchased Jerusalem-based vision technology company Mobileye for a record $15.3b., the largest sale or “exit” of an Israeli company to date.The Santa Clara-headquartered chipmaker, which has been active in Israel since 1974, employs nearly 13,000 workers in the country, exporting products worth $3.9b. in 2018 and procuring local materials and services worth $1.7b., primarily from peripheral areas.In January, Intel announced plans to invest approximately $10.9b. in the company’s Israel-based operations to construct a vast production facility in Kiryat Gat. The 370,000 sq.m. expansion is expected to add 1,000 new employees to Intel’s existing workforce.
