Intel Corp. is actively seeking to divest its Altera unit as part of a strategic response to ongoing financial challenges. The company has shortlisted several potential buyers, with Marvell Technology emerging as a strong contender. Additionally, private equity firms including Francisco Partners, Silver Lake Management, Apollo Global Management, and Bain Capital are competing for the acquisition of Altera, while Lattice Semiconductor Corp. is also in the running [f959bc7d].
Intel's interim co-CEO, David Zinsner, confirmed the engagement with outside investors, indicating a proactive approach to address the company's financial situation. Intel has set a deadline for offers by the end of January 2025, with Altera's valuation estimated to range between $9 billion and over $12 billion. This valuation is notably lower than the approximately $17 billion Intel paid for Altera in 2015 [f959bc7d].
This move comes on the heels of Intel's recent sale of a 20% stake in its IMS Nanofabrication business for about $4.3 billion in June 2023, further highlighting the company's efforts to streamline operations and bolster its financial standing [f959bc7d].
As the semiconductor industry faces increasing competition and market pressures, Intel's decision to sell Altera reflects a broader trend of consolidation and strategic realignment among major chipmakers. The outcome of this sale could have significant implications for the future of programmable chips and the competitive landscape within the semiconductor sector [f959bc7d].