New Delhi, April 14 -- Intel has agreed to sell a 51% stake in its Altera programmable chip business to buyout firm Silver Lake for $4.46 billion, in the first major move under new CEO Lip-Bu Tan to revive the struggling American chipmaker.

The deal, announced on Monday, values Altera at $8.75 billion, a sharp decline from the nearly $17 billion Intel paid in 2015. The sale will provide Intel with a cash boost as the once-leading chipmaker aggressively cuts costs after heavy investments to become a contract manufacturer under former top boss Pat Gelsinger strained finances.

Shedding assets, including Intel's stake in Altera, is at the center of Tan's strategy to streamline the chipmaker after several CEOs in the past failed to diversify...