Intel has announced the sale of 51 percent of its Altera business to private equity firm Silver Lake for $4.46 billion, valuing Altera at $8.75 billion.
The deal marks a strategic shift under new CEO Lip-Bu Tan to streamline operations, reduce expenses, and strengthen Intel’s balance sheet.
Intel will retain a 49 percent stake in Altera, enabling it to benefit from future growth while deconsolidating Altera’s financials post-transaction.
The sale gives Altera operational independence, positioning it as the world’s largest pure-play FPGA company focused on AI-driven markets like edge computing and robotics.
Raghib Hussain, former president at Marvell and co-founder of Cavium, will become CEO of Altera effective May 5, 2025, succeeding Sandra Rivera.
Silver Lake aims to support Altera’s growth as a leader in advanced semiconductors, leveraging its focus on programmable chip solutions for industrial, military, data center, and AI markets.
Altera reported $1.54 billion in revenue for 2024 but posted a $615 million GAAP operating loss, highlighting its need for restructuring and focus.
The transaction is expected to close in the second half of 2025, pending customary conditions.
Intel’s move is part of a broader strategy to exit non-core assets after struggling to maintain competitiveness in AI and processor markets.
TelecomLead.com News Desk