Pat Gelsinger, the Chief Executive Officer of Intel Corporation, provided testimony during a Senate Commerce, Science, and Transportation hearing focused on semiconductors. The event, titled "Developing Next Generation Technology for Innovation," took place in the Russell Senate Office Building on Wednesday, March 23, 2022.

Intel Corporation is reportedly considering the sale of at least a minority stake in its subsidiary, Altera, in a move that could generate several billion dollars in cash for the company, which has been facing challenges in the market. Insiders familiar with the matter, who chose to remain unnamed due to the confidentiality of the information, have indicated that Intel is seeking a valuation of around $17 billion for Altera. This valuation is slightly above the $16.7 billion Intel paid to acquire Altera in 2015.

Following a significant decline in its stock price and a prolonged period of losing market share, Intel has been exploring drastic measures to turn its fortunes around. The company has reached out to various private equity firms and strategic investors to discuss potential deals involving Altera, as revealed by the sources. Intel has also communicated to some of these investors that it might be open to selling a controlling interest in the business.

A spokesperson for Intel has declined to comment on these reports. The potential sale of a stake in Altera represents a significant shift from Intel's previous stance on the matter. As recently as last month, CEO Pat Gelsinger had stated that Intel's leadership viewed Altera as a crucial component of the company's future strategy.

Intel had previously mentioned the possibility of monetizing the Altera business through an initial public offering (IPO), which could have been considered as early as 2026. However, the consideration of strategic or private equity investments suggests a more accelerated timeline for such plans.

Gelsinger and his executive team have acknowledged Intel's current disadvantaged position in the market and have expressed their commitment to addressing these challenges aggressively. By selling a stake in Altera, Intel may be able to more effectively pursue its ambitions in semiconductor fabrication and reassure investors of its potential as an independent entity.

The sale process comes at a time when Qualcomm has shown interest in acquiring a former rival, a potential deal that would likely face intense regulatory scrutiny and could significantly alter the landscape of the semiconductor industry.

Intel's share price has plummeted by 50% this year, as the company has struggled to compete with Nvidia in the artificial intelligence chip market and has seen its market share eroded by Advanced Micro Devices in the core PC and data center sectors.