Intel is trying to sell not less than a minority stake in its Altera unit, in line with people aware of the matter, which might bring the struggling chipmaker several billion dollars in money.
Intel is in search of a deal that values Altera at about $17 billion, said the people, who requested anonymity to talk freely about confidential information. Intel bought Altera in 2015 for $16.7 billion.
After a pointy decline in stock price and prolonged market share losses, Intel has been searching for drastic changes. According to the sources, the corporate made overtures to a variety of private equity and strategic investors about Altera this week. Intel has expressed to a few of these investors that it is feasible to amass a majority stake in the corporate.
An Intel representative declined to comment. The sale process represents an abrupt change from Intel's previous commentary on Altera. CEO Pat Gelsinger recently said last month that Intel leadership views the deal as a core a part of Intel's future.
Intel has previously said it could seek to monetize the Altera business through an IPO, possibly as early as 2026. But the concept of making strategic or private investments would significantly speed up those plans.
Gelsinger and his leadership team have previously stated that Intel understands its disadvantaged position and is working aggressively to deal with it. Selling a stake in Altera could allow Intel to more easily pursue its semiconductor manufacturing ambitions and reassure investors that the corporate has a future as an independent company.
But the sales process also happens Qualcomm has expressed interest in acquiring its former competitor, a deal that may face intense regulatory scrutiny and potentially reshape the semiconductor industry.
Intel shares have fallen 50% this 12 months as the corporate has come under pressure Nvidia in artificial intelligence chips and has lost share Advanced micro devices in its core market of PCs and data centers.
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