Oct 3 Reuters Chipmaker Intel on Tuesday said it plans to operate its programmable chip unit as a standalone business starting in January, with plans to hold a public offering for stock in the business over the next two to three years.

Intel shares were up more than 2 after the bell.

Intel acquired the business when it bought Altera for 16.7 billion in 2015. Programmable chips sit between Intel39;s general purpose chips and chips that are designed for a single task and used in everything from encrypting data to 5G wireless telecommunications equipment.

Intel said Sandra Rivera, an Intel veteran, will oversee the new unit, which will keep using Intel39;s factory to make its chips. Intel said it has started an extensive internal and external search to replace Rivera, who currently oversees the company39;s data center and artificial intelligence chip business that competes with Nvidia and Advanced Micro Devices.

During a conference call with investors, Rivera said the unit is increasingly using Intel39;s factories rather than the factories in Taiwan where its chips were previously made. Programmable chips are used in defense applications such as fighter jets.

We see enormous customer interest in a more secure, resilient supply chain in North America, and you could just imagine the industrial customers, the aerospace and defense base customers, Rivera said. We39;re setting this up to really have a unique advantage by leveraging Intel.

The deal follows Intel39;s…