Intel To Offload 51% Of Altera Business To PE Firm Silver Lake

On Monday, Intel Corp INTC announced plans to sell 51% of its Altera business to Silver Lake at a valuation of $8.75 billion.

Intel will own the remaining 49% of the Altera business, enabling it to participate in Altera’s future success while focusing on its core business.

Intel also announced that Raghib Hussain will succeed Sandra Rivera as CEO of Altera, effective May 5. 

Also Read: Taiwan Semiconductor Clocks Massive Q1 Revenue Growth Despite US Tensions

The transaction will likely close in the second half of 2025, subject to customary closing conditions.

The transaction establishes Altera’s operational independence and makes it the largest pure-play FPGA (field programmable gate array) semiconductor solutions company.

In fiscal 2024, Altera generated revenues of $1.54 billion, with an adjusted gross margin of $769 million and an adjusted operating income of $35 million.

Intel agreed in 2015 to pay ~$17 billion for Altera, Bloomberg reported Monday. In 2024, Intel shared plans to explore selling a stake in Altera.

Altera drew interest from firms, including Lattice Semiconductor Corp. However, the companies had valued Altera at $9 billion.

Intel stock plunged 46% in the last 12 months as it failed to tap the shift to artificial intelligence accelerators akin to the likes of Nvidia Corp NVDA and Taiwan Semiconductor Manufacturing Co TSM.

Intel fired its chief Pat Gelsinger in 2024 after his turnaround plan to take on the likes of Taiwan Semiconductor failed to impress the board. Intel’s new CEO, Lip-Bu Tan, recently shared the chipmaker’s plans to spin off non-core assets and create new products to drive value.

Taiwan Semiconductor is reportedly set to acquire a 20% stake in a new joint venture with Intel.

The deal coincided with pressure from the White House and the Commerce Department to resolve Intel’s ongoing manufacturing and customer service challenges. Intel has struggled to manufacture chips for external clients, which has led to delays and failed tests.

Trump’s plans to offer flexibility on tariff rates on imported semiconductors offered some respite to Intel stock on Monday.

Price Action: INTC stock is up 5.13% to $20.75 at the last check on Monday.

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