By Dana Mattioli and Dana Cimilluca 

Intel Corp. is talks to buy Altera Corp. in a deal that would be the chip-making giant's largest takeover ever.

Terms of the potential deal and its timing couldn't be learned, and it's possible there ultimately won't be one.

With a market capitalization of $10.4 billion Friday afternoon, Altera would be a big bite for Intel, which has traditionally stuck to smaller acquisitions whenever it's done deals.

Write to Dana Mattioli at dana.mattioli@wsj.com and Dana Cimilluca at dana.cimilluca@wsj.com

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