A New Chapter for Intel's Altera Division

A major shift is happening at Intel. The tech giant has decided to sell a big chunk of its Altera division. This move is part of a broader strategy to turn things around. Intel is selling 51% of Altera to a company called Silver Lake. The deal is worth a whopping $4. 46 billion. This is a significant step for Intel, especially under its new leadership. This sale is not just about money. It's about focusing on what's important. Intel is looking to streamline its operations and invest in new areas. The company is aiming to become a major player in contract manufacturing. This is a big deal because it requires a lot of investment. By selling part of Altera, Intel gets a cash boost to fund these plans. The value of Altera has taken a hit since Intel bought it in 2015. Back then, Intel paid $17 billion. Now, the division is valued at $8. 75 billion. This drop in value shows how the tech world can change quickly. Altera makes programmable chips used in many fields, from telecom to military equipment. Despite this, the division has been struggling. In 2024, Altera made $1. 54 billion in revenue but still ended up with a loss of $615 million. The sale is expected to wrap up by the second half of 2025. After that, Altera's financial results will no longer be part of Intel's reports. This change will make Intel's financial picture clearer. It will also allow Altera to operate more independently. A new CEO will take over Altera from May 5. Raghib Hussain, who has experience in AI chipmaking, will lead the division. This change in leadership could bring new ideas and energy to Altera. Intel's stock saw a small boost with this news. Shares went up by 3. 9% in early trading. This shows that investors are hopeful about Intel's plans. However, the real test will be how well Intel executes its strategy. The tech world is always changing, and companies need to adapt quickly. Intel's move with Altera is a big step in that direction. It will be interesting to see how this plays out in the coming years.