Intel buying chip designer Altera

NEW YORK – Intel is buying chip designer Altera for about $16.7 billion in cash to expand its reach into new chip markets.

The deal is the biggest in Intel Corp.’s 47-year history. It is the latest in an industry that is looking to acquisitions to boost lackluster sales and cut costs.

While Intel already works with Altera on the manufacturing of certain kinds of high-end chips, Intel CEO Brian Krzanich said owning the company will allow Intel to fully integrate that manufacturing and put in place design and production improvements.

Altera is known for making chips used in phone networks and cars, markets in which Intel has been looking to expand.