Silver Lake, a prominent US private equity group, is in negotiations to acquire a majority stake in Intel’s Altera unit, marking a significant move as the chipmaker seeks to offload non-core assets and strengthen its financial position.
Intel, facing mounting pressure to boost its finances, has enlisted advisers to explore options for Altera, a business it acquired in 2015 for approximately $17 billion. As the company navigates a challenging period in the semiconductor market, Intel believes that a stake sale to a specialist investor could provide the necessary support to revitalize the business and set the stage for a potential full exit.
Altera, which has attracted interest from rival chipmakers, has found a preferred buyer in Silver Lake, according to sources familiar with the discussions. With a portfolio managing over $100 billion in assets, Silver Lake has established a reputation for successfully turning around struggling tech giants, most notably through its involvement in Dell. The firm has also been active in the semiconductor industry, having previously played a key role in the expansion of Broadcom by facilitating the appointment of Hock Tan as CEO of Avago, its predecessor.
While the talks are still in the early stages, a deal with Silver Lake would infuse much-needed capital into Intel, as the company continues to invest billions in next-generation chip manufacturing facilities in the US and Europe. The sale would align with Intel’s ongoing strategy to streamline operations and focus on core business areas amid global competition.
This potential deal is also timely, as US President Donald Trump’s administration explores strategies to support the struggling chipmaker. According to sources, the administration is looking to Taiwan Semiconductor Manufacturing Company (TSMC) to explore possible partnerships with Intel, a move that could significantly reshape the industry. These efforts come in response to the ongoing geopolitical tensions, particularly with China, which have put the global semiconductor supply chain under increasing scrutiny.
In addition to Silver Lake’s interest, reports surfaced over the weekend suggesting that Broadcom is also exploring a potential deal with Intel. Speculation of a broader breakup of Intel’s business has gained momentum, with rumors of a sale or restructuring circulating for months. The interest from Qualcomm, another US-based chip designer, further fuels the speculation.
Intel’s financial troubles have prompted significant cost-cutting measures, including large-scale layoffs and the cancellation of manufacturing projects in Europe, as its foundry business has faced multibillion-dollar losses. In the wake of these challenges, Intel announced a restructuring of its operations under the leadership of interim co-CEO and chief financial officer David Zinsner, which included the spin-off of its venture capital arm, Intel Capital.
The company’s struggles have also raised national security concerns, as Intel remains the only US company with the potential to manufacture cutting-edge chips, further intensifying scrutiny from both industry players and the US government.
