Intel's Altera Denying Rumors, Planning IPO, and Focusing on Growth

TapTechNews September 12th news, Sandra Rivera, the CEO of Altera, a subsidiary of Intel, denied in an interview with foreign media CRN the recent rumors that the company would be sold entirely by Intel, stating that Intel has not changed its plan to promote Altera to complete an IPO and sell part of its stake in Altera in 2026.

Intel acquired the FPGA enterprise Altera in 2015 at a price of 16.7 billion US dollars, and since then Intel has operated this part of the business under the name of the Programmable Solutions Group (PSG).

But on October 3, 2023, the situation took a 180° turn: Intel announced plans to spin off the PSG department, which was then under the DCAI (TapTechNews note: Data Center and Artificial Intelligence) division, into an independent operating enterprise and to promote the PSG department to achieve an IPO within 2 to 3 years, and Sandra Rivera also became the leader of the PSG department at that time.

Coming to February 29, 2024, Intel announced the official establishment of an independent FPGA company, and the brand name was reused as the original Altera.

Sandra Rivera said in the interview that although Altera has been operating independently since the beginning of the year, its business still has certain connections with the parent company, and this independent decoupling process is currently progressing faster than expected, with the goal of completing the relationship separation before January 1, 2025.

She also mentioned that Altera will focus on a wide range of FPGA businesses from top to bottom, from the cloud to the edge through the process of being independent again, and the ultimate goal that the company focuses on is to become the number one in the FPGA industry, and achieving an IPO in this process is an important milestone.

The CEO said that since Altera's main competitor Xilinx has been merged by AMD, while other FPGAs mainly focus on the low-end or specific market segments, so Altera is facing huge market opportunities, but more importantly, Altera needs to provide diversified services for customers.

Altera is also redoubling its efforts to expand the channel, and 80% of its sales and more than 50% of its demand are achieved through channel partners.