Intel announced on the 14th that it has sold 51% of its equity in subsidiary Altera.
Altera is the institutional sector of programmable chips that Intel acquired in 2015 and has agreed to sell to private equity firm Silver Lake for $4.46 billion (6.35 trillion won).
In this transaction, Altera's corporate value was estimated at $8.75 billion, which is about half of the $16.7 billion Intel paid at the time of acquisition in 2015.
The sale of Altera's equity is the first restructuring undertaken since CEO Lip-Bu Tan took office last month and is a measure to streamline non-core assets. It is known that Intel has been pushing to sell Altera since September of last year.
CEO Tan noted, "This sale demonstrates Intel's commitment to lowering its expense structure and strengthening its financial health."
Altera produces programmable chips for telecommunications and military sectors. It recorded $1.54 billion in sales last year, which accounted for only 3% of Intel's total revenue. Additionally, it experienced an operating loss of $615 million.
This sale is expected to be finalized in the second half of this year, and Altera's financial performance will be excluded from Intel's financial statements.