On Thursday, December 19, Eastern Time, Bloomberg reported that Intel has streamlined its list of potential buyers for its programmable chip division, Altera. Currently, private equity firms Francisco Partners, Silver Lake, and Lattice Semiconductor have entered the next round of bidding, and Apollo and Bain Capital are also interested in acquiring Altera.

Intel plans to request bidders to submit formal Quotes by the end of January. However, sources also indicated that there may be other buyers joining the bidding, and there is a possibility that a Trade may ultimately not be reached.

Altera is a division under Intel that specializes in the design of low-power programmable chips. The process of selling Altera was initially started by former CEO Pat Gelsinger. Despite Gelsinger's departure and the absence of a long-term CEO, Intel is still firmly advancing this plan.

It is worth noting that Intel has maintained its position as the largest chip manufacturer in the Global for a long time, ranking first in Industry revenue for nearly 30 years. However, in recent years, the company has faced numerous challenges such as intensified competition and slow technological progress. Some analysts believe that Intel's progress in other Global Strategy initiatives is still insufficient. However, the advancement of the Altera sale process may help the company gain some confidence.

Following the announcement, during Regular Trading Hours on Thursday, Intel's stock price saw a short-term rise, but it still did not succeed in turning positive.

Intel is advancing the sale process of Altera, with private equity giants competing for the opportunity.

Informed sources revealed that Intel began soliciting preliminary Quotes before Thanksgiving 2023, and has currently received various Trade structure proposals, including the sale of a minority stake of 20% to 30% in Altera, or a complete sale of the Business. The different Quote proposals value Altera from 9 billion to over 12 billion dollars, which shows a certain gap compared to Intel's valuation when it acquired Altera for around 17 billion dollars in 2015. Therefore, if sold at the current valuation, Intel may face certain accounting losses.

Insiders generally believe that Lattice Semiconductors may be one of the potential bidders. However, Lattice's current Market Cap is about 8 billion dollars, and acquiring Altera completely may require additional financial support, which might necessitate seeking financial partners.

Intel's interim Joint Chief Executive Officer and Chief Financial Officer David Zinsner stated at the Barclays Global Technology Conference that Intel has begun reaching out to external investors. Zinsner said, 'We hope to introduce partners similar to the IMS Business.'

In June 2023, Intel sold a 20% stake in its IMS Nanufacturing Business to Bain Capital Special Situations for a valuation of 4.3 billion dollars. Three months later, Intel announced that it sold a 10% stake in the IMS Business to Taiwan Semiconductor at the same valuation. The IMS Business provides advanced nano-manufacturing tools to some of the leading Global Semiconductor manufacturers.