Intel Altera's FPGA unit is attracting a lot of attention in the semiconductor industry according to a recent report by Bloomberg, Lattice Semiconductor emerging as a potential buyer for the entire division. Bloomberg reports that Lattice actively works with advisers and seeks private-sector backing to support their bid. However, Intel's preference appears to be leaning toward selling only a small portion of its Altera shares instead of selling everything and this can be a decisive factor in upcoming negotiations. The potential sale has attracted interest from many outside Lattice Semiconductor, including major private equity firms such as Francisco Partners, Bain Capital, and Silver Lake Management. Qualcomm has also expressed interest in acquiring parts of Intel's design business.

Bloomberg also reports that selling just a portion of Altera's shares would likely require complex financial arrangements, while private equity firms are considering investing about $3 billion through instruments. This could result in Intel's valuation being lower than the original purchase price. Intel CEO Pat Gelsinger has indicated plans to close the Altera transaction in early 2024, with the company valuing the nearly $16.7 billion Intel paid for Altera in 2015 at approximately $17 billion. Lattice's market value of $7.48 billion is certainly smaller and can challenge Lattice's ambitions for complete control of Altera. The Intel board discussed Altera's future last week and prefers to sell only a minority stake, with a decision expected soon.