Intel Sells Majority Stake in Altera to Silver Lake
Intel announced Monday that it has sold a majority stake in its programmable-chip unit Altera to private-equity firm Silver Lake. The deal is valued at $8.75 billion, with Intel retaining a 49% stake in the business.
Purpose of the Sale:
The move is aimed at freeing up resources to support Intel’s transition to its next stage in chip manufacturing.
## Key Details
- The sale is expected to close in H2 2025
- Raghib Hussain will become CEO of Altera on May 5, replacing Sandra Rivera
- Intel originally acquired Altera in 2015 for $16.7 billion in cash
- Intel stock rose 3.2% to $20.37 in early trading following the announcement
- Intel CEO Lip-Bu Tan, appointed last month, emphasized a shift toward core chip design & manufacturing
“Today’s announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet.”
— Lip-Bu Tan, Intel CEO
## Manufacturing Strategy
Intel has started low-volume testing of its next-gen 18A chip-manufacturing process, aiming to gain a technological edge over TSMC.
- Intel plans to manufacture its own Panther Lake processors using the 18A process in H2 2025
- Nvidia and Broadcom are reportedly testing the process
- More interest is seen in 18AP, a power-optimized version of 18A, which is expected a year after 18A
“Intel still needs a way to bridge the next few years in terms of cash flow and resources.”
— Timothy Arcuri, UBS Analyst
- Arcuri maintains a Neutral rating on Intel & lowers his price target to $22 from $23
## Looking Ahead
Intel is expected to share more on its turnaround strategy at the Foundry Direct Connect event on April 29.
Source:
https://www.barrons.com/articles/intel-stock-price-altera-sale-7b80965a