Intel sells majority stake in Altera to Silver Lake
Intel has signed a definitive agreement to sell 51% of its Altera business to private equity firm Silver Lake, marking a major shift in the FPGA market. The transaction, which values Altera at USD 8.75 billion, establishes Altera’s operational independence and makes it the largest pure-play FPGA semiconductor solutions company.
The move underscores Intel’s broader strategy to streamline operations, reduce costs, and refocus on its core businesses amid industry headwinds and an evolving competitive landscape. Intel will retain a 49% interest in Altera, allowing it to maintain a financial stake in the business while stepping back operationally.
“Today’s announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet,” says Lip-Bu Tan, chief executive officer of Intel, in a press release. “Altera continues to make progress repositioning its product portfolio to participate in the fastest growing and most profitable segments of the FPGA market.”
Intel also announced that Raghib Hussain will succeed Sandra Rivera as chief executive officer of Altera, effective May 5, 2025. Hussain, formerly president of Products and Technologies at Marvell and before that co-founder and COO of Cavium, brings decades of semiconductor and networking experience. His leadership is expected to guide Altera through its next phase of growth as an independent company.
“I am excited to lead Altera in its next chapter, and this milestone with Silver Lake furthers Altera’s journey to be the world's No. 1 FPGA solutions provider,” says Hussain, in the press release. “Backed by Silver Lake’s strong track record and now with clarity of focus as an independent company, Altera is well-positioned to build on its momentum and deliver breakthrough FPGA-based solutions that are shaping the future of compute driven by AI.
The transaction is expected to close in the second half of 2025, pending customary regulatory approvals. Upon completion, Intel will deconsolidate Altera’s financials from its earnings reports. For fiscal year 2024, Altera reported USD 1.54 billion in revenue, a GAAP operating loss of USD 615 million, and a non-GAAP operating income of USD 35 million.
