Intel (INTC.US) is reportedly planning to sell a minority stake in its programmable chip unit Altera to raise billions of dollars.

Intel is seeking to sell a minority stake in its programmable chip unit Altera, a move that would raise billions of dollars for the struggling chipmaker, according to people familiar with the matter. The company is seeking a deal that values Altera at about $17bn, the people said. Intel bought Altera for $16.7bn in 2015. The company has been seeking to make major changes after its stock price plunged and its market share continued to fall. This week, Intel sent out invitations to some private equity firms and strategic investors for Altera, the people said. Intel has told some of those investors that it might consider letting them buy a majority stake in Altera, the people said. A representative for Intel declined to comment. The sale process is in stark contrast to Intel's previous comments about Altera. Last month, chief executive Pat Gelsinger said that the company's leadership believed the business was a core part of Intel's future. Intel had previously said it might monetise Altera as early as 2026 through an IPO. But the strategic or private equity investment ideas would significantly accelerate those plans. Gelsinger and his leadership team had previously said that Intel understood its disadvantage and was actively working to rectify it. Selling a stake in Altera could make it easier for Intel to achieve its semiconductor manufacturing ambitions and reassure investors about its future as an independent company. Shares of Intel rose slightly before the market opened on Friday, but are down more than 50 per cent this year as the company has been beaten by Nvidia in artificial intelligence chips and lost market share in its core PC and data centre markets to AMD.