In a strategic shift under new CEO Lip-Bu Tan, Intel has agreed to sell a 51% stake in its Altera programmable chip unit to private equity giant Silver Lake for $4.46 billion. The deal, unveiled on Monday, pegs Altera’s valuation at $8.75 billion—a steep drop from the $16.7 billion Intel paid to acquire the company in 2015.
This move marks Tan’s first major action aimed at revitalising the once-dominant chipmaker, now struggling amid rising competition and past leadership missteps. The cash infusion is expected to support Intel’s cost-cutting initiatives after years of heavy investment into contract manufacturing under former CEO Pat Gelsinger strained company finances.
Selling non-core assets like Altera is central to Tan’s strategy to streamline Intel’s operations and refocus on its core strengths. For years, Intel has grappled with challenges in diversifying beyond its traditional PC and server chip businesses, falling behind competitors like Nvidia in AI and facing renewed pressure from AMD in the processor market.Altera, known for its flexible FPGA (field-programmable gate array) chips used in telecom networks, was once a key piece of Intel’s expansion plan. In 2024, Intel confirmed it was open to selling a stake, attracting interest from companies including Lattice Semiconductor and several buyout firms.
