Intel is reportedly exploring the sale of its Altera business, a key division within the company focused on field-programmable gate array (FPGA) technology. Acquired by Intel in 2015 for $16.7 billion, Altera has been a profitable entity, but it is now under scrutiny as part of broader restructuring efforts initiated by CEO Pat Gelsinger.
The Acquisition and Evolution of Altera
Altera, now known as the Programmable Solutions Group, was acquired by Intel to enhance its data center product portfolio and provide flexible, high-performance computing solutions. Over the years, Altera has contributed significantly to Intel’s earnings, strengthening its position in the market for programmable logic devices.
Financial Strains and Strategic Restructuring
Despite the profitability of Altera, Intel is currently facing financial strain due to extensive spending on new technologies and manufacturing capabilities. As a result, the company is considering the divestiture of its FPGA business as a means to recoup capital. This strategic move is guided by CEO Pat Gelsinger, who aims to optimize Intel’s operations and focus on core areas that promise long-term growth.
Implications of the Sale
Should Intel proceed with the sale, it would represent a significant shift in its business strategy. The sale of Altera could attract interest from other tech giants looking to bolster their programmable logic capabilities. Moreover, it would allow Intel to reallocate resources to areas where it sees the most potential for future growth, such as artificial intelligence and data centers.
