Intel has agreed to sell a 51% stake in its Altera programmable chip division to Silver Lake Management for $4.46bn, marking the first major initiative by new CEO Lip-Bu Tan to revitalise the US-based chipmaker.
Altera offers programmable solutions across sectors such as industrial, communications, data centres, and military applications, as well as emerging fields like AI/edge and robotics.
In February this year, Silver Lake engaged in exclusive talks to acquire a majority interest in Intel’s programmable chip division.
The latest transaction values Altera at $8.75bn and will establish it as an independent entity, making it the largest pure-play FPGA (field programmable gate array) semiconductor solutions provider. Altera aims to drive growth and innovation in FPGA technology to meet the needs of an AI-driven market.
Intel retains 49% stake to focus on core business operations
Intel will maintain a 49% stake, allowing it to benefit from Altera’s future successes while focusing on its primary business operations.
Intel also announced that Raghib Hussain will assume the role of CEO of Altera on 5 May 2025, succeeding Sandra Rivera. Hussain, a veteran in the technology sector, previously held the position of President of Products and Technologies at Marvell and co-founded Cavium, where he served as COO. His earlier career included engineering roles at companies like Cisco and Cadence, and he was a founding member of VPNet, an enterprise security firm.
“Today’s announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet,” said Intel CEO Lip-Bu Tan. “Altera continues to make progress repositioning its product portfolio to participate in the fastest growing and most profitable segments of the FPGA market.
“We are grateful for Sandra’s strong leadership and lasting impact throughout her 25-year Intel career and wish her continued success as she begins a new chapter. Raghib is a superb executive we selected to lead the business forward based on his vast industry experience and proven track record of success. We look forward to partnering with Silver Lake upon closing of the transaction, as their industry expertise will help to accelerate Altera’s efforts and unlock additional economic value for Intel.”
The deal is expected to close in the second half of 2025, subject to customary conditions. Upon completion, Intel plans to remove Altera’s financial results from its consolidated financial statements. In fiscal year 2024, Altera reported revenues of $1.54bn, a GAAP gross margin of $361m, and a GAAP operating loss of $615m. Its non-GAAP gross margin was $769m, with a non-GAAP operating income of $35m.
Read more: Silver Lake negotiates $9bn deal for Intel’s Altera division
