Key facts
- Altera is preparing for an IPO that could raise over $2 billion as early as 2026.
- Silver Lake and Intel are backing the chipmaker's public offering.
- The company plans to confidentially file for the IPO in the coming weeks.
- Barclays, Citi, JPMorgan, and Morgan Stanley have been tapped as underwriters.
- Intel sold a 51% stake in Altera to Silver Lake for $4.46 billion in September.
- Altera makes programmable chips used in data centers, telecommunications, and AI applications.
Altera, a chipmaker backed by private equity firm Silver Lake and Intel, is preparing for an initial public offering that could raise over $2 billion as early as 2026, according to people familiar with the matter. The company is expected to confidentially file for the IPO in the coming weeks, with a listing potentially occurring in 2026. This offering would be one of the largest semiconductor listings in recent years.
Silver Lake has reportedly tapped Barclays, Citi, JPMorgan, and Morgan Stanley to underwrite the IPO, though the final order of banks is yet to be determined. The San Jose, California-based company's plans, including the timing and size of the offering, are subject to change.
Altera manufactures programmable chips used in a variety of applications, including data centers, telecommunications networks, industrial equipment, aerospace and defense systems, and artificial intelligence. Intel acquired Altera for approximately $16.7 billion in 2015. In September, Intel sold a 51% stake to Silver Lake for $4.46 billion, valuing the chipmaker at $8.75 billion, while retaining a 49% stake.
Altera's Chief Executive Raghib Hussain had previously indicated the company's public market ambitions, stating in a July interview that it was "preparing for an eventual public listing" to pursue growth in artificial intelligence and robotics markets. The potential IPO comes as Intel continues a significant restructuring under CEO Lip-Bu Tan, aimed at restoring growth and investor confidence.