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Intel is approaching an agreement to sell its Altera Chip unit to the private lake silver capital group, as the semiconductor pioneer works to raise money and catch rivals like Nvidia in the production of chips for use in artificial intelligence.
Silver Lake will buy a portion of the majority in Altera, which makes programmable chips that technology companies can adapt to their needs for him, with a rating of about $ 9bN, according to two people informed about the matter.
Intel, who has been in talks for months to sell the unit as part of a broader plan to divert non-essential assets, will continue to possess a large share of minority capital.
Earlier this year, Intel entered into exclusive negotiations with Lake Lake after deciding that the private capital group had a plan applicable for a turn of Altera that would increase its value.
Ken Hao, a chair of Silver Lake, is leading the purchase group agreement and is considered one of the most knowledgeable investors in the private capital industry in semiconductors. Two decades ago, Hao helped create the ancestor for what is now the Broadcom chip giant carving a semiconductor business from Hewlett-Packard.
Intel won Altera for about $ 17BN in 2015. Intel previously told shareholders a stock sale would increase the value of the chipmaker and set the phase for a full exit.
While Intel and Silver Lake plan to announce their agreement in the coming days, talks are continuing and may still fail to lead to an agreement, people said.
Intel is quickly working to pour non-essential assets and many finances to invest billions of dollars in modern chip fabrication plants in the US and Europe. He announced the rotation of her capital’s capital arm, Intel Capital, in January.
The sale of assets is part of a broader planned restructuring that comes as President Donald Trump looks at ways to revive the fates of Intel, one of the architects of the modern day Silicon Valley.
Intel is in talks with the administration in a partnership with the industry leader Taiwan semiconductor production company, reported FT.
The company began a major effort to reduce costs last summer, reducing thousands of jobs and banning production projects in Europe while its “fountain” business was developed at a multi -billion dollar loss.
In December, the Intel Board overthrew the chief executive Pat Gelsinger amid the concerns that Chipmaker was not moving as fast as to capture rivals like Nvidia and AMD. The veteran investor and former chief executive of Cadence Lip-Bu Tan took over the role last month.
The company’s financial problems have alarmed Washington because Intel is the only US chipmaker to produce high -bottomed chips.
Additional reporting from Michael ACTON to San Francisco
