Intel has agreed to sell a 51% stake in its Altera programmable chip business to buyout firm Silver Lake for $4.46 billion, marking the first major move by new CEO Lip-Bu Tan to revive the struggling American chipmaker. The deal values Altera at just $8.75 billion compared to the nearly $17 billion Intel paid in 2015.
The sale comes after Intel’s former CEO Pat Gelsinger made hefty bets on contract manufacturing, straining the company’s finances. To address this, Tan is implementing a strategy to streamline the chipmaker by shedding assets, including its stake in Altera. This move is aimed at focusing Intel on its core businesses and strengthening its balance sheet.
The leadership missteps have left Intel struggling to gain a footing in the AI industry dominated by Nvidia, while rival AMD threatens its stronghold of the central processor market. The sale is expected to close in the second half of 2025, after which Intel expects to deconsolidate Altera’s financial results from its own.
Raghib Hussain will succeed Sandra Rivera as Altera CEO from May 5. The deal is seen as a positive step for Intel, allowing it to strengthen its focus on its core businesses and providing much-needed cash to revive the struggling chipmaker.
Source: https://www.reuters.com/markets/deals/intel-sell-51-stake-altera-silver-lake-2025-04-14