US-headquartered technology giant Intel Corporation has acqui-hired Ineda Systems, a Hyderabad-based startup which manufactures microchips.
In an acqui-hire, a company is acquired for the skills of its workforce rather than its products or services.
“Intel acquired engineering resources from Ineda Systems, a silicon and platform services provider based in Hyderabad,” said an Intel spokesperson, who did not provide any financial details. “This transaction provides Intel with an experienced SOC (system on chip) team to help build a world-class discrete GPU [Graphics Processing Unit] business.”
An SoC is a microchip that combines the required electronic circuits of various computer components onto a single, integrated chip.
Ineda’s employees will now join Intel but it will continue to exist as a separate entity for legal purposes, people familiar with the development told TechCircle.
Email queries sent to Ineda Systems did not elicit a response till the time of publishing this report.
The deal was first reported by The Times of India, which said the cash transaction was completed last week.
Intel has snapped up close to 100 engineers from Ineda for their skills in graphics, an area in which the US giant intends to invest heavily, the report said.
Ineda was founded in 2011 by Dasaradha Gude, a former managing director of chipmaker AMD India. Ineda Systems had made a name for itself by designing low-power chips called Dhanush for wearable devices. The company shifted focus to automotive technologies in recent years and currently works in the spheres of artificial intelligence and Internet of Things (IoT).
It had cumulatively raised around $60 million in funding from high-profile investors including Qualcomm Ventures, Samsung Catalyst Fund, Imagination Technologies, and Walden-Riverwood Ventures.
Gude regained 100% stake in Ineda last November, according to The Times of India report.