Silver Lake is in advanced negotiations to acquire a majority stake in Intel’s programmable chip unit, Altera, for approximately $9bn.  

The deal is part of Intel’s broader strategy to streamline operations and divest non-core assets, providing the chipmaker with additional capital to focus on its core semiconductor business.

Intel originally acquired Altera in 2015 for nearly $17bn, making this potential sale a significant shift in its approach. Bloomberg first reported the negotiations, noting that other private equity firms, including Bain Capital and Francisco Partners, had previously expressed interest. However, Silver Lake now appears to be leading the discussions.

This move aligns with Intel’s long-term roadmap, which includes a potential initial public offering (IPO) for Altera. The company’s former CEO, Pat Gelsinger, had hinted at selling a stake before a possible listing, with early 2025 as the target timeframe for finalizing the deal.

The semiconductor industry remains highly competitive, with major players like Taiwan Semiconductor Manufacturing Co. (TSMC) and Broadcom also exploring strategic moves that could impact Intel’s market position. Meanwhile, Intel recently reported stronger-than-expected earnings but issued a weaker revenue outlook due to declining demand for data center chips.

As the deal progresses, market analysts are closely monitoring its implications for Intel’s financial stability and future strategy. Neither Intel nor Silver Lake has provided official comments on the ongoing negotiations.