Intel Corporation (INTC.US) is close to reaching an agreement to sell its ownership of Altera, with private equity giant Silver Lake potentially becoming the new owner.

According to informed sources, private equity firm Silver Lake is in exclusive negotiations to acquire a majority stake in Intel Corporation's programmable chip business, Altera. Currently, Silver Lake is finalizing the investment details. The source mentioned that the specific ownership percentage has not been determined yet, and the negotiations may be delayed. Silver Lake declined to comment on the transaction, and Intel Corporation did not immediately respond to a request for comment. According to reports from November last year, Silver Lake and Bain Capital were potential bidders to acquire a minority stake in Altera. Intel Corporation acquired Altera in 2015 for nearly $17 billion. Private equity firm Francisco Partners has also expressed interest in acquiring a stake in Altera. Earlier, some bidders valued Altera as low as $9 billion. This deal is expected to provide much-needed cash support for Intel Corporation. Currently, the chip manufacturer is exploring various options to lower overall costs, including selling off businesses that can no longer sustain their previous hefty profits. Intel Corporation stated last year that it would seek to sell its stake in Altera as part of a broader plan to turnaround the business. "We remain focused on selling a portion of our stake in Altera to pave the way for its future IPO in the coming years. To that end, we have begun discussions with potential investors and expect to complete the process by early 2025," former Intel Corporation CEO Pat Gelsinger told analysts during a financial earnings call in October last year. In late January, the chip manufacturer's fourth-quarter earnings exceeded analysts' low expectations, but due to weak demand for data center chips and investors waiting for the appointment of a new CEO, the company's revenue guidance for this quarter did not meet market expectations. Intel Corporation's board removed Gelsinger last year due to slow progress on his revitalization plan, and the company has been searching for new leadership. In mid-Tuesday trading, Intel Corporation's stock price rose by as much as 17%, marking the largest single-day gain in nearly five years, following reports last Saturday that its competitors Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) and Broadcom Inc. (AVGO.US) are both eyeing a potential split of the U.S. chip giant. By the closing bell, Intel Corporation was up by over 16%, with a market cap of approximately $118.6 billion.