Intel spinout Altera eyes IPO amid 20% annual growth
Programmable chip maker Altera, formerly part of Intel, is preparing for an initial public offering, reporting approximately 20% annual growth. The company is focusing on AI and robotics applications.
Altera, a US-based programmable chip company spun out from Intel, is gearing up for a public listing, announcing it is growing around 20% annually with operating income more than doubling. The move follows its full independence in September.
Last September, Altera became fully independent after Intel sold a 51% stake to private equity firm Silver Lake for $4.46 billion, valuing Altera at $8.75 billion. Intel retained the remaining 49% ownership.
The company is targeting the artificial intelligence (AI) and robotics sectors, where its field-programmable gate arrays (FPGAs) can be reprogrammed after manufacturing for specialized, low-latency processing at the edge.
Altera previously saw revenue decline to $1.5 billion in 2024 from $2.9 billion in 2023, partly due to customers shifting spending towards AI graphics processing units. Its main competitor is AMD-owned Xilinx.
CEO Raghib Hussain stated that Altera has reduced its transition service agreements with Intel and is developing products using Taiwan Semiconductor Manufacturing Co.'s 2-nanometer and 3-nanometer technologies.