In 2015, Intel Corporation paid more than $ 14 billion for the business of the programmable matrix developer Altera, but such integration narrowed the range of market segments served, and therefore the current management will become the core business from January 1 next year split into an independent entity, take it public within three years and find at least one strategic investor.
Relevant statements from Intel CEO Patrick Gelsinger did this week. He has been at the head of the group since 2021, but was already involved in the restructuring of the company. Israeli company Mobileye, for whose assets Intel once paid more than $15 billion, also made a public stock offering last year, but Intel still ultimately controls most of it. Apparently something similar will happen to the former Altera store.
First, on January 1, 2024, the PSG division of which this business was a part will be structurally separated under the leadership of Sandra Rivera, who now leads Intel’s data center components division. According to Gelsinger, the range of programmable FPGA matrices offered has narrowed significantly during Intel’s ownership of this business and is mainly limited to the telecommunications and cloud computing segments. At the same time, customers from industrial automation and the aerospace industry were missing. In the new form of ownership, the core businesses have to catch up. More affordable programmable solutions from this Intel division will come onto the market in the coming months. Gelsinger is convinced that the demand for such components will continue to increase. At least in the last quarter, Intel’s core division achieved record sales.
Additionally, Intel should announce a large third-party investor in the company next year and then take the core business public through an IPO within two to three years. It’s still too early to say how much money will be raised in the share offering, but all of this news combined caused Intel’s share price to rise by more than two percent. Investors believed that the planned transformations would benefit Intel.