Silver Lake in Talks for $9B Stake in Intel’s Altera Unit

Private equity firm Silver Lake is in exclusive talks to acquire a majority stake in Intel’s (NASDAQ: INTC) programmable chip business, Altera, for about $9 billion, according to sources familiar with the matter. The deal, still being finalized, could face delays, and the exact stake size remains undetermined.

Silver Lake has declined to comment, while Intel has yet to respond. Bloomberg first reported the negotiations. Previously, Reuters noted that Silver Lake and Bain Capital were among firms considering an investment in Altera, which Intel purchased for nearly $17 billion in 2015. Francisco Partners also expressed interest.

The potential deal could provide Intel with much-needed capital as it seeks to cut costs and divest non-core assets. Intel’s former CEO, Pat Gelsinger, previously indicated plans to sell a stake in Altera before a future IPO, aiming to close discussions by early 2025.

Meanwhile, Taiwan Semiconductor Manufacturing Co. and Broadcom (NASDAQ: AVGO) are reportedly exploring deals that could restructure Intel, according to The Wall Street Journal.

Intel recently posted stronger-than-expected December-quarter earnings but issued a weaker revenue outlook amid sluggish demand for data center chips. Investors are also awaiting the appointment of a new CEO.

This move aligns with Intel’s broader strategy to streamline operations and secure funding for core business growth.