Intel has agreed to sell an interest of 51% in its altera-programmable chipbusiness to buy-out company Silver Lake for $ 4.46 billion, in the first major movement under the new CEO Lip-Bu Tan to breathe new life into the wrestling American chip maker.
The deal, announced on Monday, appreciates Altera at $ 8.75 billion, a sharp decrease in the nearly $ 17 billion Intel paid in 2015. The sale will offer Intel a money, because the once leading chip maker costs aggressively reduces the costs after heavy investments to become a contract manufacturer.
The shedding of assets, including the importance of Intel in Altera, is central to Tan’s strategy to streamline the chip maker after various CEOs in the past not diversify for years outside the company’s PC and Server chip activities.
The manager of missteps have difficulty getting a foot in the AI industry that is dominated by Nvidia, while rival AMD threatens its stronghold of the central procession market.
Intel agreed in 2015 to pay $ 16.7 billion for Altera, whose Multius chips are mainly used in telecommunications networks. In 2024, the American chip maker said it would sell an interest in Altera – part of a broader plan to reverse his company. Altera attracted interest from Lattice Semiconductor Corp. And a group of buyout companies, has reported Bloomberg News.
In recent years, Intel has lost market share to rivals and missed the shift to artificial intelligence accelerators, a market that is now being dominated by the board of Nvidia Corp. Last year Intel dropped Pat Gelsinger Pat Gelsinger from Intel after his comeback plan was slow to get Momentum.
Tan, who recently stepped into the role of CEO, said about two weeks ago that the chip maker will deduce assets that are not central to his mission, and create new products, including adapted semiconductors to try to tailor themselves better to customers.
Intel must replace the technical talent that is lost, improve the balance and better adjust the production processes to meet the needs of potential customers, TAN told those present at a business conference. He did not indicate which parts of Intel were no longer the key to the future.
