Intel said to look for minority partners in programmable chip unit: report
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- Intel (NASDAQ:INTC) is looking to raise billions of dollars from minority partners for its programmable chip unit, known as Altera, CNBC reported.
- Shares rose 0.6% in premarket trading on Friday, but have declined more than 50% year-to-date amid concerns about the viability of its turnaround prospects.
- Santa Clara, Calif.-based Intel is looking for investors to provide capital to the unit, which makes chips for high-performance communications and data center applications, and would value Altera at $17B, the news outlet added, citing people familiar with the matter. The company has contacted private equity firms and strategic investors, the people added.
- The Pat Gelsinger-led Intel has also told some of those investors that a majority stake in Altera could also be a possibility. Intel acquired Altera in 2015 for a sum of $16.7B.
- Intel did not immediately respond to a request for comment from Seeking Alpha.
- In October 2023, Intel said it would separate Altera into a standalone operation, effective January 1, 2024, in an effort to continue to simplify its larger business.