Consolidation In Computer Chip Industry: Intel Agrees To Buy Altera

03:41

June 01, 2015

Intel, headquartered in Santa Clara, California, agreed to buy Altera, which makes programmable chips, for $16.7 billion in cash. (Justin Sullivan/Getty Images)

Intel has agreed to buy Altera for $16.7 billion in cash. Intel is a powerhouse maker of processor chips, and is expected to use Altera, which makes programmable chips, to give it more strength in making chips for server systems.

The Altera chip technology has been increasingly popular as a way for companies to increase the speed of their servers, and by buying Altera, Intel will have more control of this market. The bid comes amid consolidation in the semiconductor industry.

Jill Schlesinger of CBS News joins Here & Now's Robin Young to talk about what this consolidation means for the computer chip industry.

Guest

Jill Schlesinger, CBS News. Jill tweets @jillonmoney.

This segment aired on June 1, 2015.