Intel looks to offload Altera to Silver Lake in multi-billion dollar deal: report

February 20, 2025 10:52 AM

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Intel is reportedly looking to sell a major stake in Altera, its programmable logic device subsidiary as it continues to look for ways to generate some much-needed cash.

Altera was spun out into its own company earlier this year and has routinely appeared on a list of possible assets Intel has been looking to sell as part of its drastic cost-cutting efforts.

The FT reports that US-based investment firm Silver Lake is interested in taking a majority stake in Altera, with any potential deal set to be worth billions of dollars.

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Intel acquired Altera in 2015 for around $16 billion but is looking to raise funds, having already scaled back factory expansions in Europe as well as cutting 15% of its workforce.

Reports suggest several rival chipmakers have expressed interest in Altera, but Silver Lake is considered the preferred party Intel would be willing to sell to. Talks are, however, still at a preliminary level.

Silver Lake already manages hundreds of billions in assets and has a track record of reviving major tech firms, notably taking Dell private and later profiting billions from VMware’s sale to Broadcom.

While talks are focused on a majority stake in Altera, Intel reportedly suggests the stake sale would lay the groundwork for a full exit for the subsidiary.

The FT reports that the proposed Altera sale would help Intel boost its coffers to then invest in US-based chip fabrication plants.

News of a potential Altera sale comes as Intel’s stock is on the rise for the first time in well over half a year off the back of takeover reports.

Broadcom is reportedly interested in snapping up Intel’s chip design and marketing business, while TSMC has held discussions about acquiring its US-based factories.

The news sent Intel’s stock price up to $27.75, a price not seen since late July when its financial troubles became impossible to ignore.

US President Donald Trump is reportedly seeking partners to support Intel, with TSMC mentioned as a potential collaborator — a striking shift from his previous rhetoric on Southeast Asian chips, including plans for 100% tariffs on Taiwanese imports.