A federal court has ruled that Intel Corp must pay $2.18 billion to a technology rival after a federal jury found that Intel had infringed on its patent.

A federal jury came to the conclusion that Intel had infringed on two patents related to chip-making unit owned by VLSI Technology LLC.

In a statement, Michael Stolarski, VLSI Technology’s chief executive said, the firm was “pleased that the jury recognized the value of the innovations as reflected in the patents and are extremely happy with the jury verdict.”

 “Intel strongly disagrees with today’s jury verdict. We intend to appeal and are confident that we will prevail,” said Santa Clara, California-based Intel in a statement.

With the news reaching the market, Intel’s shares were down by 2.6% at $61.24.