Intel has announced that it will sell a 51% controlling interest in its Altera semiconductor division to private equity firm Silver Lake, under a finalized agreement valued at $8.75 billion.
The deal will make Altera an operationally independent entity, although Intel will retain a 49% ownership stake. Leadership of the unit will transition to Raghib Hussain, who is set to take over as CEO from Sandra Rivera on May 5.
Intel CEO Pat Gelsinger commented on the move, stating:
"This step reflects our commitment to sharpening focus, cutting costs, and strengthening our balance sheet. Altera continues to reposition its product lineup to capture growth in some of the fastest-growing and most profitable segments of the FPGA market."
Founded in 1983 by semiconductor pioneers Rodney Smith, Robert Hartmann, James Sansbury, and Paul Newhagen, Altera develops Field-Programmable Gate Arrays (FPGAs)—programmable chips widely used in industries such as telecom, robotics, and artificial intelligence—alongside the software that supports them.
Intel originally acquired Altera in 2015 for $16.7 billion, integrating it as the Programmable Solutions Group (PSG). In 2023, Intel announced plans to spin off PSG as a separate company while keeping a majority stake, with the goal of taking it public within three years.
This strategic shift comes amid booming demand in the FPGA sector. Industry analysts forecast the market will grow from $12.1 billion in 2023 to $25.8 billion by 2029.
Altera generated $1.54 billion in revenue for Intel in fiscal year 2024.
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