Intel Seeks Investor for Stake in Altera Chip Unit, CNBC Reports

Intel is in search of an investor to acquire a stake in its Altera subsidiary, as reported by CNBC. The US tech giant is aiming for a deal that would value the programmable chip unit at approximately $17 billion. This initiative comes amidst challenges faced by Intel in its business operations, coinciding with efforts by the US to revitalize its chip industry.

Seeking Investor for Altera Stake

Tech giant Intel is actively seeking an investor for a stake in its Altera subsidiary, according to CNBC's report on Thursday. The company is targeting a valuation of around $17 billion for Altera, with plans to raise several billion dollars for at least a minority stake in the subsidiary.

Majority Stake Acquisition Possibility

Intel has communicated to certain investors the potential opportunity to acquire a majority stake in Altera. This development aligns with the company's strategy to secure investments in Altera amidst its journey towards an IPO.

Challenges Faced by Intel

Despite receiving substantial funding from the CHIPS Act, including $8.5 billion in March and an additional $3 billion in September, Intel continues to encounter business hurdles. These challenges include issues with manufacturing delays and lagging behind in the AI sector, resulting in a 55% decline in the company's stock price year-to-date.

Competitive Landscape

In September, reports surfaced that Qualcomm had approached Intel regarding a potential takeover deal. Furthermore, Intel's CEO, Pat Gelsinger, acknowledged the company's intention to divest part of its stake in Altera to enhance its financial position.

Industry Dynamics

Intel's quest to secure an investor for Altera comes amidst a significant period for semiconductor firms. ASML and TSMC recently reported quarterly earnings highlighting growth opportunities in AI chip development in the near to medium term.

Intel is yet to respond to requests for comments on these developments from Business Insider, indicating the evolving landscape in the chip industry.

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By: htan@insider.com (Huileng Tan)
Title: Intel Seeks Investor for Stake in Altera Chip Unit, CNBC Reports
Sourced From: www.businessinsider.com/intel-altera-investor-subsidiary-billions-stake-semiconductor-chips-deals-2024-10
Published Date: Fri, 18 Oct 2024 03:38:49 +0000