Intel has announced on April 14, that it will sell a 51 percent stake in its Altera semiconductor division to private equity firm Silver Lake, in a deal that values the business at $8.75 billion. 

According to Intel, the move will grant Altera operational independence while Intel retains the remaining 49 percent ownership. Raghib Hussain is set to assume the role of Chief Executive Officer of Altera on 5 May, taking over from Sandra Rivera.

In a statement, Lip-Bu Tan, Chief Executive Officer at Intel said, "Today's announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet." He added that Altera is progressing in repositioning its product portfolio to participate in the 'fastest growing and most profitable segments' of the FPGA (field-programmable gate array) market.

Altera, which develops programmable semiconductors and the supporting software, serves a broad range of industries including telecommunications, robotics, and artificial intelligence (AI). Founded in 1983, the company was acquired by Intel in 2015 for $16.7 billion and subsequently became part of its Programmable Solutions Group (PSG), as per Wall Street Journal.

Intel had previously announced plans in 2023 to separate PSG into an independent entity, with the goal of pursuing an initial public offering (IPO) within three years while maintaining majority control. 

A research by 'Markets and Markets' suggests the FPGA industry could more than double in value from $12.1 billion in 2023 to $25.8 billion by 2029.

Altera reported revenue of $1.54 billion for the 2024 fiscal year. The transaction with Silver Lake is expected to be completed in the second half of 2025, pending regulatory approvals.