Intel is considering selling a minority stake in its Altera unit to raise cash amidst financial challenges. This decision follows a 50% drop in Intel’s stock this year and loss of market share in the semiconductor sector.
Intel is looking for private equity and strategic investors, including Qualcomm, hoping to value Altera at $17 billion, slightly above the $16.7 billion it paid nine years ago, according to CNBC.
This step indicates a shift in Intel’s strategy, especially after CEO Pat Gelsinger emphasized Altera’s significance for the company’s future. The potential sale also reflects broader market and geopolitical issues, particularly regarding China.
Even with funding from the CHIPS Act, Intel faces manufacturing delays and struggles with artificial intelligence advancements, contributing to a 55% decline in its stock price this year.
With an IPO planned for 2026, Intel is accelerating efforts to monetize Altera and may seek private equity to enhance its semiconductor manufacturing capabilities and reassure investors.
Recently, Apollo Global Management has expressed plans to invest $5 billion in Intel, once the world’s most valuable chipmaker.
Additionally, Intel’s Foundry unit signed a billion-dollar deal with Amazon to create custom chips, strengthening their partnership with Amazon Web Services.
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