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Intel CEO Lip-Bu Tan previously stated that, in order to achieve a successful turnaround, the company must divest its non-core assets—and now, the first step has been taken. According to Liberty Times, citing Reuters, Intel announced on Monday (April 14) that it will sell a 51% stake in its subsidiary Altera to private equity firm Silver Lake for USD 4.46 billion. The transaction is expected to be completed in the second half of 2025.
The report notes that Intel’s sale of a 51% stake in Altera of USD 4.46 implies a total valuation of USD 8.75 billion—nearly half the USD 17 billion Intel paid to acquire the company in 2015.
Notably, as announced by Intel, Raghib Hussain will assume the role of Altera’s CEO, effective May 5, 2025. Hussain previously served as President of Products and Technologies at Marvell.
Strengthening Core Operations
In its press release, Intel stated that the transaction will help the company further concentrate on its core business. CEO Lip-Bu Tan emphasized that the move reflects Intel’s commitment to sharpening its strategic focus, reducing expenses, and strengthening its balance sheet.
Improving the company’s foundry operations has long been its central priority, and Tan remains committed to this vision, as noted in a previous Economic Daily News report, citing Reuters. To support these efforts, Reuters suggests that Intel may divest additional non-core assets. The report highlights Mobileye Global—a self-driving technology firm in which Intel holds a majority stake—as one such asset under consideration for sale.
Future Growth for Altera
Meanwhile, as noted by TechPowerUp, the transaction will grant Altera operational independence, making it the largest company focused solely on FPGA (field-programmable gate array) solutions. Since Intel will retain a 49% stake, it will continue to benefit from Altera’s future growth, the report indicates.
According to Intel’s press release, Altera delivers leading programmable solutions across several strategically important sectors, including industrial, communications, data centers, military, aerospace, and government applications. It also serves emerging markets such as AI/edge computing and robotics.
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(Photo credit: Intel)
