Intel has completed the sale of a 51% stake in its programmable chip subsidiary Altera to private equity firm Silver Lake for about $3.3 billion, a move that reduces its cost base and accelerates its restructuring efforts. Intel will retain the remaining 49% stake.

The transaction values Altera at $8.75 billion—roughly half the $17 billion Intel paid for the business in 2015. By deconsolidating Altera from its financials, Intel has lowered its 2025 adjusted non-GAAP operating expense target to $16.8 billion from $17 billion, while keeping its 2026 goal unchanged at $16 billion. News of the deal lifted Intel shares by about 4%, extending year-to-date gains to roughly 27%.

With Silver Lake's backing, Altera will operate as the world's largest independent pure-play FPGA provider. The company said the deal gives it greater flexibility and resources to accelerate innovation in industrial automation, telecom, data centers, robotics, and edge AI. CEO Raghib Hussain noted that demand for programmable logic is rising amid the expansion of AI workloads, adding that Altera sees “huge opportunity” to capture market share from rivals.

Silver Lake Chairman Kenneth Hao said the investment reflects strong confidence in Altera's technology leadership and long-term growth prospects. “We are excited to support Raghib and his team as they expand in critical markets and continue delivering industry-leading FPGA solutions,” he said.

Intel's sale of Altera is part of a broader cost-cutting and restructuring program. CEO Lip-Bu Tan has announced workforce reductions exceeding 20% this year, along with streamlining management layers and slowing or canceling capital-intensive projects in Europe and the U.S. The company is also consolidating global packaging operations to improve efficiency.

Intel CFO David Zinsner said the company is seeing positive results from lower operating expenses, improved capital efficiency, and monetization of non-core assets. “We are taking the necessary steps to build a financially disciplined foundry business,” he said.

Altera, which reported $816 million in revenue and a 55% gross margin in the first half of 2025, now aims to accelerate growth as an independent company with Silver Lake's support while Intel continues to sharpen its focus on its core foundry operations.