Intel is reportedly in discussions to sell a majority stake in its programmable chip business Altera to private equity company Silver Lake, as part of a strategy to offload non-core assets.
The chipmaker acquired Altera in 2015 for $16.7 billion in an effort to strengthen its data centre and IoT portfolio. Nearly a decade later, Intel is reportedly eyeing a sale of the venture as it shifts investments towards its foundry business and cuts costs amid financial pressures.
Bloomberg, sources claim the company is in exclusive discussions with Silver Lake, a renowned technology investor. Bain Capital also held an interest in the acquisition last year, Reuters reported
Selling a stake in Altera could provide Intel with cash influx and align with the chipmaker’s efforts to streamline operations as it battles a downturn in revenue. The company reported bleak Q2 2024 results, a time when it announced plans to reduce its workforce by 15 per cent by the end of the year in a multi-billion dollar cost-saving bid. The company’s struggling fortunes also led to the departure of CEO and board member Pat Gelsinger late last year.
Intel remains optimistic on 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.