Feb 18 (Reuters) - Buyout firm Silver Lake is in

exclusive discussions to purchase a majority stake in Intel's ( INTC )

programmable chip business, Altera, a person familiar

with the matter told Reuters on Tuesday.

Silver Lake is finalizing the details of the investment. The

exact size of the stake has yet to be determined and the

discussions could be delayed, the person said.

Silver Lake declined to comment on the deal, while Intel did

not immediately respond to a Reuters request for comment.

Bloomberg News first reported the development earlier on

Tuesday.

Silver Lake and Bain Capital were among potential bidders

likely to compete for a minority stake in Altera, which Intel

acquired for nearly $17 billion in 2015, Reuters had exclusively

reported in November.

Private equity firm Francisco Partners had also expressed

interest in a deal for a stake in Altera.

The transaction is expected to provide Intel with a

much-needed cash boost, as the chipmaker explores various

options to cut overall costs, which include selling businesses

it can no longer afford to finance from its previously

substantial profits.

"We remain focused on selling a stake in Altera on a path to

its IPO in the coming years. To that end, we have begun

discussions with potential investors and expect to conclude in

early 2025," former Intel CEO Pat Gelsinger told analysts during

a post-earnings call in October.

Intel's ( INTC ) rivals, Taiwan Semiconductor Manufacturing Co ( TSM )

and Broadcom ( AVGO ), are each eyeing potential deals

that could split the U.S. chipmaking icon into two separate

entities, the Wall Street Journal reported on Saturday.

In late January, the chipmaker reported December-quarter

results that beat analysts' low expectations, while its

projected revenue for the current quarter missed estimates the

company grapples with tepid demand for its data center chips and

as investors await the appointment of a new CEO.