What an FPGA Is
An FPGA — field-programmable gate array — is a semiconductor that customers can configure after manufacturing.
Unlike a fixed-function ASIC, an FPGA can be reprogrammed for different logic functions.
That is useful when customers need:
- flexibility;
- shorter development cycles;
- lower volumes than a custom ASIC;
- changing standards.
Why Intel Bought Altera
Intel announced the $16.7B acquisition in 2015. [S23]
The logic was to combine:
Intel CPUs
+
Altera FPGAsfor data-center and embedded workloads.
The company also expected Intel manufacturing to strengthen Altera's product roadmap.
Why the Deal Was Strategically Logical
A CPU is flexible in software.
An FPGA is flexible in hardware.
Together they can support workloads that need customized acceleration without committing to a permanent ASIC design.
Why Intel Later Sold Control
By 2025 Intel needed to focus capital and management attention on:
- Core;
- Xeon;
- 18A;
- Foundry;
- advanced packaging.
Selling 51% of Altera to Silver Lake unlocked cash and moved Altera outside Intel's consolidated operating structure. [S24][S25]
The 2025 Transaction
The transaction valued Altera at an enterprise value of $8.75 billion. [S24]
Intel retained 49%.
After September 12, 2025:
Altera
≠ consolidated Intel subsidiary
Intel stake
= equity-method investmentWhy This Page Matters
Altera is a useful case study in Intel's changing corporate strategy.
2015 Intel was expanding the product portfolio.
2025 Intel was simplifying the portfolio to protect capital for core manufacturing and CPU businesses.
Common Misconceptions
“Intel sold all of Altera.”
No. Intel retained 49%.
“Altera revenue is still included in Intel segment revenue.”
Not after deconsolidation on September 12, 2025. [S25]
“Intel's 2015 purchase price and 2025 enterprise value can be compared directly as a simple investment return.”
Not safely.
The business changed over a decade, transaction structures differ, and Intel retained a large stake.