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Intel headquarters. (Photo courtesy of Intel) |
[Alpha Biz= Kim Jisun] Intel has decided to divest its majority stake in its semiconductor subsidiary Altera, marking the first major restructuring move under CEO Pat Gelsinger’s successor, CEO Lip-Bu Tan.
On Monday (local time), Intel announced it would sell a 51% stake in Altera to private equity firm Silver Lake for $4.46 billion. The deal is expected to close in the second half of this year, pending customary closing conditions. Intel will retain a 49% stake in the company.
Founded in 1983, Altera specializes in field-programmable gate arrays (FPGAs), chips that can be configured after manufacturing for specific applications. Intel acquired the company in 2015. Under the new arrangement, Altera will operate independently with former Marvell executive Raghib Hussain taking over as CEO.
The sale marks the first divestiture of a non-core asset since Lip-Bu Tan took the helm at Intel.
In fiscal year 2024, Altera generated $1.54 billion in revenue but posted an operating loss of $615 million.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
