Silver Lake buys 51% of Intel’s Altera FPGA business as the chip giant seeks to refocus on and invest in its core products

LovabledanielsApril 15, 2025101 Views

Intel sells 51% of Altera to Silver Lake for $4.46bn, valuing business at $8.75bn
Altera gains independence as largest pure-play FPGA semiconductor company
Raghib Hussain named new CEO as Intel shifts its strategic focus

Intel, now under the leadership of new CEO Lip-Bu Tan, has been facing a number of challenges in recent years, to the point where it was rumored the tech giant could sell off its chip-design and marketing business or spin off its chip plants.

Whether that will happen in the future remains to be seen, but Intel says it has signed a definitive agreement to sell 51% of its Altera business to Silver Lake for $4.46 billion.

This values the company at $8.75 billion, which is quite a drop from nearly $17 billion Intel paid for it in 2015.

Once-in-a-generation opportunity

Altera has been active in FPGA (field programmable gate array) development for over four decades, providing programmable semiconductor solutions for use in industries like communications, aerospace, government, data centers, and industrial automation.

The sale gives Altera operational independence and establishes it as the largest pure-play FPGA semiconductor company in the world. Intel will keep a 49% stake, allowing it to remain involved while shifting its focus more squarely to its core operations.

The transaction is expected to close in the second half of 2025, pending customary closing conditions.

Once finalized, Intel plans to deconsolidate Altera’s financials. In 2024, Altera reported $1.54 billion in revenue, a GAAP operating loss of $615 million, and non-GAAP operating income of $35 million.

Raghib Hussain, previously president of Products and Technologies at Marvell, will succeed Sandra Rivera as CEO of Altera on May 5, 2025.

“This investment represents a once-in-a-generation opportunity to invest in a scale leader in advanced semiconductors,” said Kenneth Hao, chairman and managing partner of Silver Lake.

“Together with Raghib, we will be focused on strengthening Altera’s technology leadership position and investing in emerging AI-driven markets such as edge computing and robotics. We look forward to working closely with Intel as a strategic partner who will continue to provide U.S.-based foundry services and complementary engagement with customers.”

Lip-Bu Tan described the agreement as a strategic step forward. “Today’s announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet,” he said.

“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.”