TLDR
- Intel sold 51% of Altera to Silver Lake for $3.3 billion, completing the deal on September 12, 2025
- The chipmaker lowered its 2025 operating expense target to $16.8 billion from $17 billion due to Altera deconsolidation
- Intel originally paid nearly $17 billion for Altera in 2015, but valued the unit at only $8.75 billion in this deal
- Altera generated $816 million in revenue with 55% gross margins in the first half of 2025
- Intel retains a 49% stake in Altera while Silver Lake takes majority control of the programmable chip business
Intel Corporation wrapped up a major divestiture on September 12, selling 51% of its Altera programmable chip unit to private equity firm Silver Lake. The deal valued Altera at $8.75 billion total, with Silver Lake paying approximately $3.3 billion for majority control.
The transaction represents a steep markdown from Intel’s original investment. The chipmaker acquired Altera for nearly $17 billion back in 2015, making this sale a substantial write-down on the decade-old purchase.
Intel announced Monday it has revised its full-year 2025 operating expense target downward. The company now expects adjusted operating expenses of $16.8 billion, down from the previous $17 billion guidance.
The reduction reflects the deconsolidation of Altera from Intel’s books. With Silver Lake now holding majority ownership, Intel no longer consolidates Altera’s financials into its own reporting.
Financial Performance of Divested Unit
Altera showed solid performance as part of Intel during the first half of 2025. The programmable chip business generated $816 million in revenue with healthy gross margins of 55%.
Operating expenses for the unit totaled $356 million during that six-month period. These figures demonstrate Altera’s profitability profile before the ownership change.
Intel retains a 49% minority stake in the business following the transaction. This allows the company to maintain some exposure to Altera’s future performance while reducing operational control.
Strategic Restructuring Under New Leadership
The Altera sale represents part of Intel’s broader streamlining efforts under CEO Lip-Bu Tan. The company has been working to improve its cash position through various strategic moves.
Intel has undergone multiple organizational changes throughout 2025. These include management shuffles and operational restructuring across different business segments.
The U.S. government has also taken a direct stake in Intel this year. Federal grants were converted into equity, giving the government approximately 10% ownership in the chipmaker.
Silver Lake’s investment brings fresh capital and expertise to the Altera business. The private equity firm specializes in technology investments and operational improvements.
Intel’s 2026 operating expense target remains unchanged at $16 billion. The company maintains its longer-term cost structure goals despite the current year adjustment.
The transaction closed on September 12 according to regulatory filings. Both companies confirmed completion of all necessary approvals and transfer requirements.
Intel stock traded down 2.15% following the announcement. Shares closed at $24.08 with pre-market trading showing a modest recovery to $24.47.
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