Intel has reached a definitive agreement to sell 51% of its Altera business to private equity firm Silver Lake, a significant development in the FPGA market. This transaction values Altera at $8.75 billion and grants it operational independence, positioning it as the largest pure-play FPGA semiconductor solutions company.

This move aligns with Intel's strategy to streamline operations and focus on its core businesses amid industry challenges. By retaining a 49% stake in Altera, Intel maintains a financial interest while reducing its operational involvement.

Intel CEO Lip-Bu Tan emphasized the importance of this decision, stating it reflects the company's commitment to enhancing focus, lowering expenses, and strengthening its balance sheet. He noted that Altera is making strides in repositioning its product portfolio to tap into the most lucrative segments of the FPGA market.

In conjunction with the sale, Raghib Hussain will take over as CEO of Altera on May 5, 2025. Hussain, who has extensive experience in the semiconductor and networking sectors, is expected to lead Altera through its next growth phase as an independent entity.

Hussain expressed enthusiasm about his new role, highlighting that the partnership with Silver Lake will help Altera advance its goal of becoming the leading FPGA solutions provider. He believes that with Silver Lake's support and Altera's newfound independence, the company is well-positioned to innovate and deliver cutting-edge FPGA solutions, particularly in AI-driven computing.

The transaction is anticipated to close in the latter half of 2025, pending regulatory approvals. Once finalized, Intel will remove Altera’s financials from its earnings reports. For fiscal year 2024, Altera reported revenues of $1.54 billion, with a GAAP operating loss of $615 million and a non-GAAP operating income of $35 million.

In related news, the electronics industry continues to evolve, with upcoming events like the Evertiq Expo scheduled for May 15, 2025, in Malmö, Sweden. These events will provide opportunities for industry professionals to connect and engage with leading experts. To stay informed about the latest developments, readers are encouraged to sign up for the newsletter.