Intel CEO Pat Gelsinger will testify during the Senate Commerce, Science and Transportation Semiconductor Hearing entitled Advancing Next Generation Technology for Innovation, in the Senate Russell Office Building on Wednesday, March 23, 2022.
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Intel Apple Inc is looking to sell at least a minority stake in its Altera unit in a deal that would raise several billion dollars in cash for the struggling chipmaker, according to people familiar with the matter.
Intel is looking for a deal that values Altera at about $17 billion, said the people, who requested anonymity to speak freely about confidential information. Intel bought Altera for $16.7 billion in 2015.
After a sharp decline in its stock price and extended market share losses, Intel was looking to make radical changes. The company made overtures to a number of private equity and strategic investors this week regarding Altera, the sources said. Intel has expressed to some of these investors the possibility of acquiring a majority stake in the company.
An Intel representative declined to comment. The sale represents a surprising change from Intel's previous comment on Altera. Last month, CEO Pat Gelsinger said Intel's leadership views the business as a key part of Intel's future.
Intel has previously said it could look to monetize its Altera business through an IPO, perhaps as soon as 2026. But the idea of getting a strategic investment or private equity investment would be a marked acceleration of those plans.
Gelsinger and his leadership team have previously said that Intel understands its bad situation and is working aggressively to address it. Selling a stake in Altera could allow Intel to more easily pursue its semiconductor manufacturing ambitions and assure investors that it has a future as an independent company.
But the sale also comes Qualcomm It has expressed interest in acquiring its former rival, a deal that would face fierce regulatory scrutiny and potentially reshape the semiconductor industry.
Intel shares are down 50% this year, as the company suffers a crushing defeat Nvidia In artificial intelligence chips and lost share Advanced micro devices In the core PC and data center market.
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