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Intel Seeks Billions for Minority Stake in Altera Business, Sources Say

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Intel is reportedly exploring the sale of a minority stake in its Altera business, aiming to raise several billion dollars in much-needed cash as it seeks to stabilize its financial position. According to sources familiar with the discussions, Intel is pursuing a deal that values Altera at around $17 billion, close to the $16.7 billion it paid to acquire the company in 2015.

This potential sale marks a significant strategic shift for Intel, especially since CEO Pat Gelsinger had recently stated that Altera was considered a core part of the company’s future. However, after experiencing a sharp decline in stock price and a prolonged period of losing market share, Intel has been forced to consider dramatic actions to turn things around.

The company has approached private equity firms and other strategic investors about a possible stake in Altera, with some investors being offered the opportunity to acquire a majority interest, according to the sources. Intel’s representatives have declined to comment on the reports.

Intel had previously hinted at plans to monetize the Altera unit through an initial public offering (IPO), potentially in 2026. However, these recent developments suggest that the company may accelerate those plans in order to raise capital more quickly. A sale of this magnitude could provide Intel with the resources to focus on its broader ambitions, particularly in semiconductor manufacturing, and demonstrate to investors that it can remain competitive as an independent entity.

The potential sale comes amid heightened competition within the semiconductor industry. Rival companies such as Qualcomm have reportedly expressed interest in acquiring Intel, although such a deal would likely face significant regulatory scrutiny and could reshape the landscape of the semiconductor market.

Intel has faced numerous challenges in recent years, including a 50% drop in its stock price this year alone. The company has struggled to keep pace with competitors like Nvidia, which has gained significant ground in the artificial intelligence (AI) chip market, and Advanced Micro Devices (AMD), which continues to erode Intel’s market share in both the PC and data center sectors.

As Intel seeks to reestablish its position in the industry, the potential sale of a stake in Altera could represent a pivotal move in its broader recovery strategy.

 

TSMC Reports 54% Profit Surge Amid AI Boom, Beating Expectations

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Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, announced on Thursday a significant 54% increase in net profit for the third quarter, largely driven by rising demand for AI-related applications. The company posted a net income of 352.3 billion Taiwanese dollars (approximately $10.1 billion) for the July-September period, surpassing an estimated 300.2 billion Taiwanese dollars, according to LSEG data.

TSMC, which counts major technology companies such as Apple and Nvidia among its clients, saw its net revenue climb to $23.5 billion in the third quarter, marking a 36% year-on-year increase. The company’s gross margin also improved, rising to 57.8%, compared to 54.3% in the same period the previous year.

“Our business was supported by strong smartphone and AI-related demand for our industry-leading 3nm and 5nm technologies,” TSMC stated, reflecting the growing global reliance on advanced semiconductors for AI and mobile applications.

In addition to its impressive profit, TSMC’s shares, listed on the Taipei Stock Exchange, have surged nearly 75% year-to-date, highlighting strong investor confidence in the company’s future growth prospects amid the AI-driven semiconductor boom.

Capital expenditure for TSMC edged slightly higher during the third quarter, reaching $6.4 billion, up from $6.36 billion in the previous three months. This increase reflects the company’s ongoing efforts to expand its production capabilities, especially to meet rising demand from the U.S. market.

In line with its global expansion strategy, TSMC is investing $40 billion to construct two chip plants in Arizona, part of its broader commitment to meet U.S. semiconductor needs. Additionally, the company opened its first manufacturing facility in Japan earlier this year.

TSMC’s positive results contrast with recent news from ASML, a key supplier of chip-making equipment to TSMC, which issued a lower-than-expected sales forecast, sending its shares down. Despite such concerns, the AI boom continues to fuel optimism, though some market watchers question the long-term sustainability of this growth. Notably, Foxconn’s CEO, Young Liu, commented last week that the AI frenzy “still has some time to go,” suggesting that advancements in AI models will continue to drive the demand for cutting-edge semiconductors.

 

India’s Path to Becoming a Semiconductor Powerhouse Faces Challenges, but Collaboration is Key

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India is making bold strides toward establishing itself as a global semiconductor powerhouse, aiming for self-reliance in manufacturing. Prime Minister Narendra Modi has set ambitious goals, targeting a leap in the country’s electronics sector from $155 billion today to $500 billion by 2030. However, experts are divided on whether this target is feasible, with a consensus that India cannot achieve it on its own.

Eri Ikeda, assistant professor at IIT Delhi, highlights that India’s semiconductor journey is still in its early stages. Taiwan leads global semiconductor production with 44% market share, followed by China (28%) and other key players like South Korea and the U.S. Collaborative efforts are already in motion, such as Taiwan’s Powerchip Semiconductor partnering with Tata Electronics to build India’s first wafer fab in Gujarat, and American chipmaker Micron Technology planning to produce semiconductors in India by 2025.

India’s drive for semiconductor self-reliance is partly fueled by its growing role as a viable alternative to China for global supply chains. However, analysts caution that India must first learn the nuances of the semiconductor industry. Rishi Bhatnagar of the Institution of Engineering and Technology suggests that India should focus on collaboration rather than direct competition with China, which continues to invest heavily in semiconductor equipment from the U.S. and Japan.

India is strengthening ties with the U.S. to diversify its semiconductor sources. The U.S. Department of State has partnered with India’s Semiconductor Mission to bolster global semiconductor value chains, further fueled by geopolitical tensions with China. As a democratic nation with a growing English-speaking workforce, India is positioned as an attractive investment destination for tech giants like Apple and Google.

While infrastructure and investment challenges remain, India has advantages such as a low labor cost and a young workforce. The country is also making significant improvements in its infrastructure, with plans to modernize highways, railways, and airports. These developments are crucial as India positions itself to cater to the increasing global demand for semiconductors.

Despite the hurdles, optimism persists. Analysts see India’s potential to meet global chip demands while maintaining lower production costs, offering a competitive edge over China. Samir Kapadia, CEO of India Index, emphasizes India’s unique combination of economic stability, workforce potential, and infrastructure development, making it a strong contender in the global semiconductor race.