AFP: Chipmaking giant Intel announced yesterday it will acquire the much-smaller Altera for US $ 16.7 billion, accelerating a wave of consolidation in the semiconductor industry.

Intel said the deal, the largest in its 47-year history, would boost its portfolio of chips for data centres and the ‘Internet of Things,’ an emerging area of transactions that do not require human-to-human or human-to-computer contacts.

The deal follows the May 28 announcement that Singapore-based Avago Technologies would buy rival Broadcom in a tech-sector record US $ 37 billion deal aimed at mobile chipmaking. Intel will pay US $ 54 per share in cash for Altera, which designs processors for phone networks, server systems, cars and other devices. In mid-morning trade, Altera shares rose 6.1 percent to US $ 51.85, while Dow member Intel fell 1.6 percent to US $ 33.90.

Altera shares were trading in the mid-US $ 30s in March prior to US media reports of a possible deal with Intel.