[News] Intel Completes Altera Stake Sale; Trims 2025 Operating Expense Target to $16.8B

According to TechNews, citing Benzinga, Intel has recently undertaken a series of bold cost-cutting measures, with early results beginning to show. The company announced the completion of a long-anticipated deal to sell a majority stake in its Altera business to Silver Lake. As a result, Intel now expects to lower its full-year cost outlook.

Following the transaction, Intel reduced its 2025 adjusted non-GAAP operating expense target to $16.8 billion from $17 billion to reflect Altera’s deconsolidation, while maintaining its 2026 target at $16 billion, the report highlights.

As for the deal terms, Silver Lake acquired a 51% stake in Altera for roughly $3.3 billion, while Intel retained a 49% share. Both parties contributed their holdings to a newly formed limited partnership and executed an amended and restated partnership agreement.

Notably, Altera’s press release states that the completed transaction positions the company as the world’s largest independent pure-play FPGA provider. The CEO of the newly spun-off firm said he sees “huge opportunity” to capture FPGA market share from AMD, according to CRN.

Intel’s Broader Restructuring Push

The sale of Altera’s stake is not an isolated move by Intel but part of a broader and deeper restructuring strategy. TechNews notes that the company had previously carried out a large-scale workforce reduction, cutting about 15% of its employees, while also eliminating roughly 50% of its management layers.

In addition, TechNews points out that Intel has taken a more cautious stance on capital spending, slowing or canceling certain plant projects. Planned facilities in Poland and Germany have been halted, while construction in Ohio has also slowed. The company is likewise consolidating global packaging operations to improve supply chain efficiency and reduce redundant investments, the report adds.

Read more

• [News] Altera, Spun Off From Intel Earlier This Year, Reportedly Cutting Nearly 100 Jobs
• [News] Intel Sells Altera to Silver Lake for $4.46B; Taps Marvell Exec as New CEO

(Photo credit: Intel)