November 25, 2024 /SemiMedia/ — According to industry insiders, Lattice Semiconductor is working with advisors and seeking private equity support to explore the possibility of fully acquiring Altera, a subsidiary of Intel. This move could introduce uncertainty into Intel's current plan to sell a minority stake in Altera.

Sources revealed that several prominent private equity firms, including Francisco Partners, Bain Capital, and Silver Lake, are evaluating potential investments in Altera. The business could also attract interest from other semiconductor companies.

However, Lattice’s attempt to acquire Altera faces significant challenges. With a market capitalization of just $7.48 billion, Lattice is far below the $17 billion Intel paid to acquire Altera in 2015. Analysts suggest that Lattice may need to design a complex financial structure and secure approximately $3 billion in private equity funding to complete the deal.

Intel, on the other hand, plans to attract investors by selling a portion of Altera’s shares, with the possibility of spinning off the business via an IPO. This strategy is part of Intel's broader efforts to improve its business performance. Intel’s board of directors is set to discuss Altera's future during a meeting this week, with the company reportedly leaning toward selling a minority stake rather than divesting the entire division.

It remains uncertain whether Lattice or any private equity firm will proceed with a formal acquisition bid. Notably, Lattice CEO Ford Tamer has ties to Francisco Partners, a connection that could play a role in advancing discussions.

Representatives for Intel, Lattice, and the private equity firms involved declined to comment on the matter.