Intel Considering Altera Stake Sale

Intel is discussing the sale of a majority stake in its programmable chip business Altera to private equity company Silver Lake. The move is part of a strategy to offload non-core assets.

The chipmaker acquired Altera in 2015 for $16.7 billion to strengthen its data center and IoT portfolio. Nearly a decade later, Intel is eyeing a sale of the venture as it shifts investments toward its foundry business and cuts costs amid financial pressures. The company is in exclusive discussions with Silver Lake. However, Bain Capital also held an interest in the acquisition last year.

Selling a stake in Altera could provide Intel with a cash influx and align with the company’s efforts to streamline operations as it battles a downturn in revenue. Intel’s struggling fortunes also led to the departure of CEO and board member Pat Gelsinger late last year. The company remains optimistic about the potential deal, which could pave the way for a full exit.

Reports of a possible sale of Intel’s chip design and manufacturing business have circulated for months. In September, US chip giant Qualcomm also explored a deal but ultimately backed out due to the transaction’s complexity.