Intel Corp. is
selling a 51% stake in its Alta subsidiary, valued at $4.46 billion, to help it
recover from losses.
The chipmaker's
stake will be sold to private equity firm Silver Lake.
It is the first
major move by Lip-Bu Tan since taking over as Intel's CEO in March 2025 to
address the company's woes.
Alta was acquired
by Intel in 2015 for $17 billion, but due to losses, it is now worth $8.75
billion.
Lip-Bu Tan says
the sale is part of a plan to reduce the company's operating costs and continue
its journey to becoming fully independent.
“Today’s
announcement demonstrates our commitment to improving our focus, reducing our
operating expenses and balancing our cash flow with our revenue,” he said.
Alta is set to go
public in 2024, with the company saying it will invest in other businesses
Last year, Intel
began a plan to spin off Altera, a company it expects to complete by mid-2025.
The company makes
chips that can be used in almost any type of technology, especially in
communications.
Chips are the
devices that enable these devices to process, transmit, or store information.
