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CALIFORNIA — Semiconductor giant Intel Corp. announced Monday that it will sell a 51% stake in its Altera business to private equity powerhouse Silver Lake in a deal that values the programmable semiconductor firm at $8.75 billion. The transaction is expected to close in the second half of 2025, pending regulatory approvals.

The Intel Altera Silver Lake deal marks a strategic move by Intel to sharpen its business focus and increase financial flexibility, while giving Silver Lake majority control over one of the tech sector’s key programmable logic players. Skadden Arps Slate Meagher & Flom LLP is advising Intel, and Latham & Watkins LLP is representing Silver Lake.

Altera, based in San Jose, develops programmable semiconductor solutions used across industries such as aerospace, industrial automation, and artificial intelligence (AI). It generated $1.54 billion in revenue during fiscal year 2024.

Intel Refocuses, Retains Minority Interest

Intel CEO Lip-Bu Tan, who took the helm in March, said the deal aligns with his goal of divesting non-core assets to refocus the company’s operations. Intel acquired Altera in 2015 for $16.7 billion, and will now retain a 49% interest, allowing it to benefit from the company’s future growth without direct management.

“We look forward to partnering with Silver Lake… Their industry expertise will help accelerate Altera’s efforts and unlock additional economic value for Intel,” Tan said.

Silver Lake to Lead Altera Into AI Era

Silver Lake, based in Menlo Park, CA, is known for large-scale tech investments and plans to bolster Altera’s product expansion into edge computing, robotics, and AI applications. “This investment represents a once-in-a-generation opportunity,” said Silver Lake chair and managing partner Kenneth Hao.

As part of the deal, Raghib Hussain, previously president of products and technologies at Marvell Technology, will become CEO of Altera effective May 5, replacing Intel executive Sandra Rivera.

“Now with clarity of focus as an independent company, Altera is well-positioned to deliver breakthrough FPGA-based solutions shaping the future of AI-driven compute,” said Hussain, referencing field programmable gate arrays, a key component of Altera's offerings.

Legal Advisors and Deal Teams

• Intel is advised by Skadden Arps, with partners Amr Razzak, Sonia Nijjar, Christopher Bors, Joseph Yaffe, Nathan Giesselman, Ryne Posey, Leila Sayegh, and Michelle Gasaway.

• Silver Lake is represented by Latham & Watkins, with a team led by partners Justin Hamill, Chad Rolston, Max Schleusener, and Bret Stancil, and including Morgan Brubaker, Tony Klein, Katharine Moir, Michelle Kelban, and Erin Murphy.