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Intel Eyes Major Stake Sale in Altera Chips Unit
Key Takeaways
Intel is reportedly in advanced negotiations for the sale of a majority stake in its Altera programmable chips division, as per a recent Bloomberg report. This development arose shortly after it was disclosed that major players Broadcom and TSMC are considering bids for various segments of the iconic chip manufacturer. As a result of these discussions, Intel’s shares experienced a significant surge on Tuesday.
According to Bloomberg, private equity firm Silver Lake Management is close to finalizing a deal to acquire a majority interest in Intel’s Altera programmable chips division. Details regarding the value of the transaction are still being assessed, with both parties remaining tight-lipped; Silver Lake has refrained from commenting, and Intel has yet to provide a statement.
Following the announcement, Intel’s stock price soared by 16%, driven by the news alongside separate reports suggesting that Broadcom is targeting Intel’s chip design operations while Taiwan Semiconductor Manufacturing Company (TSMC) is interested in its manufacturing capabilities. This interest from industry giants reflects a broader trend of consolidation and strategic collaboration within the semiconductor sector.
The potential sale and ongoing negotiations regarding Intel come at a time when there is considerable speculation about increased governmental backing for U.S. domestic chip manufacturing. Recently, Vice President JD Vance mentioned that the administration aims to bolster the design and production of artificial intelligence chips domestically, which could further enhance Intel’s foundry business prospects.
Despite the positive market reaction with a 16% increase in shares, it’s important to note that Intel’s stock has experienced a steep decline, having lost over one-third of its value in the past year. This fluctuation highlights the challenges faced by the company in a highly competitive and rapidly evolving industry.
UPDATE—Feb. 18, 2025: This article has been revised to include Silver Lake’s decision to refrain from commenting on the reported discussions regarding the deal.
Source
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