Private equity giant Silver Lake has struck a major deal with Intel, agreeing to acquire a majority stake in Intel’s Altera business for approximately $7.5 billion. The transaction values the field-programmable gate array (FPGA) business at roughly $15 billion and marks a significant shift in Intel’s portfolio strategy.
Intel acquired Altera back in 2015 for $16.7 billion in what was then its largest acquisition. The decision to sell a controlling interest now comes as CEO Pat Gelsinger implements a broader restructuring plan aimed at streamlining operations and strengthening the company’s financial position.
“This partnership with Silver Lake represents a strategic opportunity to unlock value while maintaining our technological connection to Altera’s industry-leading FPGA solutions,” said Gelsinger in the announcement. “The investment allows us to focus on our core businesses while ensuring Altera can accelerate its innovation roadmap.”
FPGAs function as programmable silicon chips that can be configured after manufacturing, making them highly versatile for applications ranging from data centers to telecommunications infrastructure. The Altera business has been a steady performer in Intel’s portfolio, though it hasn’t achieved the growth trajectory initially projected during the 2015 acquisition.
Silver Lake Managing Partner Egon Durban described the investment as aligned with the firm’s strategy of backing established technology leaders with growth potential. “Altera represents best-in-class FPGA technology with significant runway in an increasingly AI-driven world,” Durban stated. “We see substantial opportunities to accelerate product development and expand market presence.”
The transaction structure allows Intel to retain a significant minority stake, approximately 49%, while benefiting from an immediate capital infusion. Under the agreement, Altera will operate as an independent company but maintain technology partnerships with Intel, particularly around manufacturing capabilities.
Market analysts view the deal positively for both parties. According to Goldman Sachs analyst Toshiya Hari, “Intel gains financial flexibility while preserving strategic optionality in the FPGA market, which complements their broader semiconductor portfolio.” The FPGA market is projected to grow at a compound annual rate of 8.5% through 2028, reaching nearly $15 billion, according to recent research from Mordor Intelligence.
For Silver Lake, the acquisition builds upon their extensive technology investment portfolio, which includes stakes in companies like Airbnb, Expedia, and Twitter (now X). The private equity firm has increasingly targeted established technology businesses with stable revenue streams and growth potential in emerging domains like artificial intelligence and edge computing.
The Altera business will face competition from FPGA market leader Xilinx, which was acquired by AMD in 2022, along with Lattice Semiconductor and other specialized players. Industry observers note that separating from Intel could potentially give Altera more operational flexibility while benefiting from Silver Lake’s management expertise.
Customers using Altera’s products span industries including telecommunications, automotive, industrial automation, and cloud service providers. The company’s programmable logic devices have seen increasing demand in AI applications, where their reconfigurability offers advantages for rapidly evolving computational requirements.
The deal represents another significant shift in the semiconductor landscape, which has experienced extensive consolidation and restructuring in recent years. Intel itself has been navigating challenging market conditions, working to regain technological leadership while managing financial pressures from manufacturing investments and competitive pressures.
Latham & Watkins represented Silver Lake in the transaction, with a corporate deal team led by partners Justin Hamill and Jane Greyf. Financial and regulatory approvals are expected to be completed by early 2025
