Intel Completes $3.3 Billion Sale of Altera Stake to Silver Lake

Santa Clara, California — Intel Corp. completed a significant transaction on September 12, 2025, selling a 51% stake in its Altera business to Silver Lake for approximately $3.3 billion. The agreement, initially signed on April 14, marks a major shift in Intel’s business strategy as it seeks to streamline operations.

As part of the deal, Intel retains a 49% interest in Altera, and both companies have contributed their holdings to a newly formed limited partnership. The results from Altera will be included in Intel’s third-quarter financials, covering the period from June 29 to September 11.

For the first half of 2025, Altera reported revenues of $816 million with a gross margin of 55%. Following the sale, Intel has adjusted its operating expense target for 2025 to $16.8 billion, down from $17 billion, and plans to maintain a target of $16 billion for 2026.

Intel’s recent restructuring is aimed at addressing financial pressures, with GAAP operating expenses running at $21.9 billion for 2025 and expected to decrease to $19 billion in 2026. The divestiture aligns with the company’s efforts to stabilize operations after reporting a $3.1 billion loss in its foundry business during the second quarter.

Shares of Intel have increased about 20% year-to-date, eclipsing the Nasdaq Composite Index’s 15% rise. This upward trend follows news that the U.S. government has acquired a significant equity position in Intel through the CHIPS Act, giving it a 10% stake in the company.

Intel Chief Financial Officer David Zinsner indicated that the government’s investment is designed to support the foundry segment, which has faced ongoing losses. The agreement allows the government to purchase another 5% stake at a set price if Intel’s ownership of the foundry drops below 51%.

New CEO Lip-Bu Tan has initiated a restructuring plan to cut the workforce to 75,000 and establish a distinct board for the foundry unit, aiming to attract key customers for its technology in the upcoming years.

The sale of Altera not only signals Intel’s decisive pivot but also underscores the company’s commitment to refining its focus amidst a competitive landscape in the semiconductor industry.

Intel shares were trading at $24.43 in premarket activity following the announcement of the Altera transaction.