Sources report that Intel is looking to acquire a minority stake in Altera's business for billions of dollars.

• Sources report that Intel is seeking a billion-dollar investor for its Altera subsidiary, with a minority stake acquisition in mind.
• A minimum valuation of $16.7 billion for Altera would be required for any deal, as that is the amount Intel paid for the company in 2015.
• Intel may seek a majority acquirer for its business.

The chipmaker is considering selling a minority stake in its Altera unit for several billion dollars in cash to raise funds, according to sources.

Intel is reportedly seeking a deal to acquire Altera for approximately $17 billion, according to sources who wish to remain anonymous and share confidential information. Intel acquired Altera for $16.7 billion in 2015.

Intel is considering acquiring a majority stake in Altera after experiencing a decline in its stock price and market share. The company has been exploring this option by reaching out to private equity and strategic investors.

Intel's representative declined to comment on the sale process of Altera, which is a sudden shift from the company's previous statement that Altera is a crucial part of Intel's future.

Intel has previously stated that it could consider monetizing its Altera business through an IPO, possibly as soon as 2026. However, the idea of taking strategic or private equity investment would be a significant acceleration of those plans.

Intel's leadership team has previously stated that they are aware of their disadvantaged position and are actively working to address it. Selling a stake in Altera could enable Intel to more easily pursue its semiconductor fabrication goals and reassure investors of their future as an independent company.

The sale process of its onetime rival has been expressed by the company, which would face intense regulatory scrutiny and potentially reshape the semiconductor industry.

This year, Intel's shares have fallen 50% due to the company's poor performance in the artificial intelligence chip market and its loss of market share in the core PC and data center market.

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