November 6, 2024 /SemiMedia/ — Intel is exploring bids from private equity firms including Silver Lake and Bain Capital for a minority stake in Altera, its programmable chip division acquired in 2015 for nearly $17 billion, sources said. Intel recently initiated steps to spin off Altera as an independent company and expects to receive initial bids in the coming weeks.

According to insiders, Intel is in early discussions with prospective investors and expects to receive initial bids in the coming weeks. Francisco Partners has also expressed interest in acquiring a stake in Altera and may join the bidding process.

Intel aims to value Altera near its original acquisition price, though the precise amount of shares to be sold remains unclear. Any deal is expected to be worth at least several billion dollars.

During Intel’s latest earnings call, CEO Pat Gelsinger confirmed the company’s intent to gradually divest Altera shares over the next few years, with plans for a public listing by early 2025. For the quarter ending September 30, Altera reported a 14% sequential revenue increase to $412 million.

Prior to the Intel acquisition, many of Altera’s chips were manufactured by TSMC. Post-acquisition, Intel intends to transition Altera’s chip production to its own facilities to strengthen manufacturing autonomy.