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- Intel is actively seeking an investor to purchase a stake in its Altera division, as reported by CNBC.
- The tech behemoth aims for a valuation of approximately $17 billion for this programmable chip unit.
- Amidst these developments, Intel faces significant hurdles while the US government strives to rejuvenate its semiconductor sector.
According to a recent report from CNBC, Intel is on the lookout for an investor interested in acquiring a stake in its Altera subsidiary. The company hopes to secure several billion dollars through this deal, which would value Altera at around $17 billion.
This week, Intel communicated with certain investors about the potential for acquiring a majority share in Altera. This news emerges during challenging times for Intel as it navigates difficulties just as Washington intensifies efforts to bolster domestic chip manufacturing due to national security concerns.
In March, President Joe Biden announced that Intel would receive $8.5 billion from the CHIPS Act aimed at supporting semiconductor production. Additionally, another $3 billion was allocated to the company in September. Despite this financial backing, Intel continues grappling with operational setbacks and struggles within the competitive AI landscape; notably, their stock price has plummeted by 55% year-to-date.
The Wall Street Journal reported last month that Qualcomm had approached Intel regarding a possible acquisition deal.
In his recent communication with employees,CEO Pat Gelsinger stated that selling part of their stake in Altera is essential for “carefully managing our cash flow while significantly enhancing our balance sheet and liquidity.”
“The divestment of part of our interest in Altera has been integral to our strategy aimed at generating funds ahead of an IPO,” Gelsinger elaborated further during his address.
This search for investment comes during a pivotal week for semiconductor firms; both ASML and TSMC have recently released quarterly earnings reports indicating promising growth prospects within AI chip markets over both short and medium-term horizons.
Intel did not provide immediate comments when contacted by Business Insider outside regular business hours.
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