Intel is initiating the sale of a minority stake in its programmable chips unit, Altera, which it acquired for approximately $17 billion in 2015. This move aims to provide Intel with a much-needed financial boost as it faces challenges in the competitive chip market.

Private equity firms Silver Lake and Bain Capital are reportedly among the potential bidders for this stake, alongside Francisco Partners. The discussions are still in the early stages, but the sale could help Intel raise capital as it prepares Altera for a future initial public offering (IPO). Intel CEO Pat Gelsinger emphasized the company's focus on this sale during a recent earnings call, stating that they expect to finalize discussions with investors by early 2025.

Altera, based in California, specializes in programmable chips that serve various applications, including video processing and telecommunications. Despite a 14% revenue growth in the last quarter, reaching $412 million, Intel has struggled to maintain its position as a leading chipmaker, losing ground to competitors like TSMC and Nvidia, particularly in the AI sector.

In addition to the stake sale, Intel is reportedly negotiating with the U.S. government for $8.5 billion in direct funding to support its operations. The company has also announced significant workforce reductions, cutting 15% of its global staff, which equates to around 15,000 jobs, as part of a broader strategy to reduce costs by over $10 billion.

Overall, the stake sale of Altera represents a critical step for Intel as it seeks to stabilize its financial situation and regain its competitive edge in the semiconductor industry.