Intel Corporation is reportedly seeking to sell at least a minority stake in its Altera unit, aiming to secure several billion dollars in cash, according to sources familiar with the situation. The company is pursuing a deal that would value Altera at approximately $17 billion. Intel originally acquired Altera in 2015 for $16.7 billion.
The decision comes amid a significant decline in Intel’s stock price and ongoing market share losses. In response to these challenges, Intel has approached multiple private equity and strategic investors this week regarding the potential sale of Altera. Sources indicate that the company has conveyed to some investors the possibility of acquiring a majority stake in the unit.
Intel declined to comment on the matter. This potential sale marks a notable shift from Intel’s previous stance on Altera. As recently as last month, Pat Gelsinger, Intel’s CEO, had described Altera as a core component of Intel’s future plans.
Intel had previously considered monetizing the Altera business through an initial public offering (IPO), potentially as soon as 2026. The move to consider strategic or private equity investment represents an acceleration of those plans.
Gelsinger and his leadership team have acknowledged Intel’s current disadvantages and are working to address them. Selling a stake in Altera could provide Intel with the liquidity needed to advance its semiconductor fabrication goals and reassure investors of its viability as an independent company.
This development occurs as Qualcomm has reportedly shown interest in acquiring Intel, a potential transaction that would face significant regulatory scrutiny and could significantly impact the semiconductor industry landscape.
Intel’s shares have fallen by 50% this year, attributed to competition from Nvidia in artificial intelligence chips and losses in its core PC and data center markets to Advanced Micro Devices.
