Intel seeks billions for minority stake in Altera business, sources say

Intel is looking to sell at least a minority stake in its Altera unit in a transaction that would raise several billion dollars in cash for the struggling chipmaker, according to people familiar with the matter.

Intel is looking for a deal that values Altera at around $17 billion, said the people, who requested anonymity to speak freely about confidential information. Intel purchased Altera for $16.7 billion in 2015.

Following a steep drop in its stock price and extended stretch of market share losses, Intel has been looking to make drastic changes. The company made overtures to a number of private equity and strategic investors this week about Altera, the sources said. Intel has expressed to some of those investors that it would be possible to acquire a majority stake in the business.

A representative for Intel declined to comment. The sale process represents an abrupt change from Intel's prior commentary on Altera. As recently last month, CEO Pat Gelsinger said that Intel's leadership considered the business to be a core part of Intel's future.

Intel has previously said it could look to monetize Altera business through an IPO, possibly as soon as 2026. But the idea of taking strategic or private equity investment would be a marked acceleration of those plans.

Gelsinger and his leadership team have previously said that Intel understands its disadvantaged position and is working aggressively to remedy it. Selling a stake in Altera might allow Intel to more easily pursue its semiconductor fabrication ambitions and assure investors that it has a future as an independent company.

But the sale process also comes as Qualcomm has expressed interest in acquiring its onetime rival, a deal that would face fierce regulatory scrutiny and