TLDR
- Intel (INTC) completed sale of 51% Altera stake to Silver Lake for $3.3 billion on September 12
- Company reduced 2025 operating expense guidance to $16.8 billion from $17 billion
- Original Altera acquisition cost nearly $17 billion in 2015, now valued at $8.75 billion
- Altera generated $816 million revenue with 55% gross margins in H1 2025
- Intel maintains 49% ownership while Silver Lake takes operational control
Intel Corporation closed a major asset sale on September 12, transferring 51% of its Altera programmable chip unit to Silver Lake for $3.3 billion. The transaction marks a turning point for Intel’s portfolio restructuring strategy.
The deal values Altera at $8.75 billion total, representing a steep discount from Intel’s original $17 billion acquisition in 2015. This pricing reflects the challenging market conditions facing programmable chip manufacturers over the past decade.
Following the transaction completion, Intel announced revised financial guidance for 2025. The company lowered its full-year adjusted operating expense target to $16.8 billion from the previous $17 billion estimate.
Altera’s Financial Performance Under Intel
Altera demonstrated strong operational metrics during its final months as an Intel subsidiary. The programmable solutions business generated $816 million in revenue during the first half of 2025.
The unit maintained healthy gross margins of 55% while recording operating expenses of $356 million. These figures highlight Altera’s profitability potential under new ownership structure.
Silver Lake’s majority ownership provides fresh capital and specialized technology expertise. The private equity firm brings operational experience from previous semiconductor investments.
Intel retains a 49% minority stake in the restructured entity. This ownership level allows continued participation in Altera’s future growth while reducing operational responsibilities.
Strategic Restructuring Continues
The Altera divestiture represents part of CEO Lip-Bu Tan’s broader streamlining initiative. Intel has pursued multiple cost reduction and portfolio optimization measures throughout 2025.
The company executed several management changes and organizational restructuring efforts this year. These moves target improved operational efficiency and enhanced cash flow generation.
Government investment also reshaped Intel’s ownership structure in 2025. Federal grants were converted to equity, giving the U.S. government approximately 10% ownership in the chipmaker.
Intel maintains its 2026 operating expense target at $16 billion despite current year adjustments. The company projects continued cost discipline while investing in core growth areas.
Stock performance reflected mixed investor sentiment following the announcement. INTC shares declined 2.15% to $24.08, though pre-market trading showed recovery to $24.47.
The transaction required regulatory approvals and transfer procedures that concluded on schedule. Both parties confirmed successful completion of all required documentation and asset transfers.
Silver Lake’s investment strategy focuses on operational improvements and market expansion opportunities. The firm’s technology sector expertise could benefit Altera’s competitive positioning.
Intel’s revised expense guidance reflects the immediate impact of deconsolidating Altera’s financial results. The adjustment provides clearer visibility into Intel’s standalone operational metrics for investors.
