US chipmaker Intel has sold its entire stake of 1.18 million shares in British semiconductor designer ARM Holdings, according to a regulatory filing released on Tuesday.

The move comes as part of a broader restructuring effort aimed at shoring up Intel's finances amidst intense competition in the semiconductor industry.

Based on ARM's average stock price between April and June, the sale likely netted Intel approximately $146.7 million. This divestment aligns with Intel's recently announced $10 billion cost-reduction plan, which includes cutting more than 15 per cent of its workforce and suspending dividend payments.

Intel's chief executive officer, Pat Gelsinger, has described the current restructuring as "the most substantial... since the memory microprocessor transition four decades ago." The company is grappling with a significant decline in demand for traditional data centre semiconductors and faces stiff competition in the burgeoning artificial intelligence (AI) chip market, where it lags behind rivals such as Nvidia.

The Santa Clara, California-based firm reported cash and cash equivalents of $11.29 billion at the end of June, against total current liabilities of about $32 billion. Intel's stock has plummeted by more than 59 per cent this year, with a staggering 26 per cent drop on 2 August following the announcement of its dividend suspension.

Gelsinger has outlined a strategy focused on developing advanced AI chips and expanding Intel's contract manufacturing capabilities. The company aims to reclaim its technological edge from Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker. However, this push has increased costs and squeezed profit margins, necessitating aggressive cost-cutting measures.

In contrast to Intel's struggles, ARM's shares have performed impressively since its initial public offering last September, rising nearly 65 per cent year-to-date. Japan's SoftBank Group, which holds a majority stake in ARM, has benefited from this surge.

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