UK chip designer Arm is sold by Intel as part of company-wide restructuring and cost-cutting measures.

• A regulatory filing revealed that Intel sold its 1.18 million stake in British chip company Arm Holdings.
• The company is currently undergoing restructuring and cost-cutting measures in an attempt to remain competitive in the chip industry.

Intel has disposed of its 1.18 million share stake in British chip company Arm Holdings, as per a regulatory filing, in an effort to strengthen its financial position amidst stiff competition.

Nearly $147 million was likely raised by Intel through the sale, which was disclosed on Tuesday and based on Arm's average stock price between April and June.

At the end of June, Intel had $11.3 billion in cash and cash equivalents and $32 billion in liabilities, as per its financial report.

Intel is undergoing a significant restructuring, as announced by CEO Pat Gelsinger, which includes divesting from Arm during a tumultuous financial period.

In August, Intel announced a $10 billion cost-reduction plan that will result in the elimination of around 15,000 employees, the reduction of its fiscal fourth-quarter dividend, and a decrease in capital expenditures.

Intel reported worse-than-expected quarterly results and issued light guidance for the current period, resulting in a 26% drop in its stock price, which was the largest single day decline in 50 years.

Despite designing and manufacturing its own chips, the semiconductor industry has been facing stiff competition from other chip firms due to the growing demand for AI technology.

Gelsinger stated that the company's recent losses were intensified by its decision to accelerate the production of its Core Ultra PC chips, designed for AI workloads.

Rival companies, including and , are also in a race to release more AI-centric chips, hoping to replicate the success of .

Gelsinger aims to revive the company's struggling chip foundry business and regain market share lost to Taiwan and South Korea.

When contacted by CNBC on Wednesday, Intel and Arm refused to comment on the sale.

Despite losing nearly 60% of its stock value this year, Intel slightly increased in after-hours trading, according to LSEG data.

Since its IPO in September, Arm's shares have experienced a nearly 65% increase in value year to date.

Japan owns a majority stake in Arm and has profited from the increase in the company's stock value.