Oregon-based Lattice Semiconductors Mulling Purchase Of Intel’s Altera
Oregon-based Lattice Semiconductors is exploring a bid to buy part of Altera, Intel’s programmable chip business. Bloomberg reported that the Hillsboro firm, Lattice, is seeking a private equity backer.
Offer Being Considered for Intel’s Altera By Lattice Semiconductors
Altera was founded in 1983 and acquired by Intel on December 28, 2015, for $16.7 billion in cash. It became a newly formed business unit within Intel called Programmable Solutions Group (PSG).
In October last year, Intel indicated it would unbundle PSG into a separate company and seek an IPO within three years.
Both Altera and Lattice manufacture field programmable gate arrays, and Altera’s multi-use chips are used mainly in telecom networks.
Given the competitive nature of chip manufacturing, antitrust regulators in the U.S., Europe, and Asia may try to block a sale. Altera reported sales of $412 million last quarter compared to Lattice’s $127 million. Lattice’s market value is currently $7.5 billion.
More recently, after posting a loss of over $1 billion in August this year, Intel announced 1,300 layoffs at its Hillsboro campus. Lattice also laid off 14% of its workforce earlier this month due to flailing sales and profits. In October, Intel was knocked off the Dow Jones Industrial Average Spot by Nvidia after losing over half its value.
The chip giant has been seeking investors in Altera ahead of an Initial Public Offering (IPO) of stock in Altera.
Bloomberg reported that their confidential source said the Lattice offer could complicate the Intel’s plans to sell a minority stake in the unit but Francisco Partners, Bain Capital, and Silver Lake are investigating bids.