Intel has contracted 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 yesterday, values Altera at $8.75 billion, a sharp decline from the $17 billion Intel paid in 2015.

The sale will provide Intel a cash boost as the chipmaker aggressively cuts costs to bolster its balance sheet, while it invests in a capital-intensive undertaking to become a contract manufacturer.

Shares of Intel were up 3.9% in premarket trading.

Since last year, Intel has taken steps to spin Altera out as a separate unit and said it planned to sell a portion of its stake.

“Today’s announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet,” CEO Tan, who took the helm after former top boss Pat Gelsinger’s ouster, said.

Altera makes programmable chips that can be used for various purposes from telecom equipment to military.