Intel sells majority stake in Altera to lower expenses
Thank you for reading this post, don't forget to subscribe!
Raghib Hussain is set to replace Sandra Rivera as Altera’s CEO.
Intel is selling a 51pc stake in its programmable chip business Altera to Silver Lake, a private equity firm, for $4.46bn.
The chipmaker purchased Altera in 2015 for $16.7bn, and since then its value has dropped by nearly 50pc to $8.75bn.
Silver Lake’s “strategic investment” into Altera reflects Intel’s “commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet”, said Lip-Bu Tan, the chipmaker’s recently appointed CEO.
Earlier this year, Intel’s global venture capital arm, Intel Capital, separated from its parent company to attract external capital.
Altera’s sale will provide Intel with another cash boost, as the company tries to cut its costs after making a $16.6bn loss in Q3 2024.
Although, it has since recovered, losing only $126m in Q4, with overall losses of $18.7bn last year.
Intel will still hold a 49pc stake in Altera, which makes programmable chips used for data centres, automotives, telecoms equipment and defence.
“Altera continues to make progress repositioning its product portfolio to participate in the fastest growing and most profitable segments of the FPGA market,” Tan said.
FPGA, or field-programmable gate array is an integrated circuit which can be repeatedly programmed after manufacturing.
Intel also announced Raghib Hussain, the former products and tech president at semiconductor manufacturer Marvell, as Altera’s new CEO.
Hussain will be taking over from Sandra Rivera, who had a 25-year career in Intel, previously serving as the company’s chief people officer, as well as leading its Data Centre and AI Group. She took over as Altera’s CEO in 2024.
“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,” Tan added.
Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.
