[News] Intel Reportedly Narrows down Bidders for Altera, with Formal Offers Due by January’s End

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After finalizing the USD 7.86 billion funding award under U.S. CHIPS Act, Intel may be close to another business turnaround. According to Bloomberg, Team Blue has advanced several buyout firms to the next stage of bidding for Altera, its FPGA unit.

A deadline for potential buyers to submit formal offers has also been set, as they need to be provided by the end of January, according to sources cited by the report.

Bloomberg notes that private equity firms such as Francisco Partners and Silver Lake Management are among the contenders, while Apollo Global Management and Bain Capital are also in the running for Altera.

Lattice: the Only Semiconductor Contender Surfaced by Now

Notably, Lattice Semiconductor, one of Altera’s FPGA (Field Programmable Gate Array) peers, is also rumored to be competing in the second round, as per Bloomberg. For now, it remains the only tech company surfaced to show interests in the deal.

Gaining control of Altera could be a challenging endeavor for Lattice. As per Bloomberg, with a market value of USD 8 billion, Lattice may need additional financial support.

Representatives from the aforementioned parties declined to comment, Bloomberg notes.

Following its request for initial bids before Thanksgiving in November, Intel has reportedly received various deal-structure proposals, ranging from acquiring a 20% to 30% stake in Altera to seeking full ownership, according to sources cited by Bloomberg.

Moreover, Bloomberg indicates that some bidders have presented multiple options in their proposals, with valuations for the unit ranging from USD 9 billion to over USD 12 billion. The scale of the offers, however, is significant lower than the USD 17 billion Intel paid to acquire Altera in 2015.

The “IMS” Model?

Intel’s interim co-CEO David Zinsner suggested that the company might be inclined to bring in another partner, similar to what they did with the IMS business, the Bloomberg report adds.

According to Intel’s press release, IMS is an industry leader in multi-beam mask writing tools required to develop advanced extreme ultraviolet lithography (EUV).

In June 2023, Intel sold a 20% stake in its IMS Nanofabrication business to Bain Capital, with the deal valuing the unit at around USD 4.3 billion. Three months later, an additional 10% stake in IMS was sold to Taiwanese foundry giant TSMC.

Read more

• [News] U.S. FPGA Peer Lattice Reportedly Explores Acquisition of Intel’s Altera Unit
• [News] Intel Mulls Sale of Altera Stake, while Silver Lake and Bain Reported as Potential Buyers

(Photo credit: Intel)