Intel announced Monday that it was selling the majority of its Altera chip business to technology investor Silver Lake in a deal valued at $8.75 billion.

Intel Corp. has agreed to sell a 51% stake in its programmable chips unit Altera to Silver Lake Management, making good on plans to start spinning off non-core assets.

Shares of Intel surged Monday after the chipmaker said it agreed to sell 51% of its programmable chip business Altera to tech private equity firm Silver Lake.