Intel jumped 7.1%, after the microprocessor giant announced an agreement with Apollo to buy back the 49% stake in their joint venture linked to its Fab 34 site in Ireland, for USD 14.2 billion.
“The agreement reflects Intel’s continued commercial momentum, supported by the growing and essential role that processors play in the AI era, a significantly strengthened balance sheet and the strong partnership between Intel and Apollo,” the group said.
Fab 34 is a high-volume semiconductor manufacturing facility for products using Intel 4 and Intel 3 process technologies, including Intel Core Ultra and Intel Xeon 6 processors.
Intel continues to invest significant amounts of capital at its campus in Ireland to expand manufacturing capacity, strengthen execution and offer customers next-generation AI-enabled systems.
An Apollo stake dating back to 2024
In 2024, funds and affiliates managed by Apollo led an investment of USD 11.2 billion to acquire this 49% stake, providing Intel with equity-like capital while preserving balance sheet strength.
This transaction provided the Santa Clara group with significant financial flexibility and enabled the company to unlock and redeploy capital to advance its strategic priorities.
The buyout of the joint venture’s 49% stake is expected to be financed by available cash and proceeds from the issuance of new debt for approximately USD 6.5 billion.
The transaction is expected to be accretive to ongoing EPS while strengthening Intel’s credit profile in 2027 and beyond. The group continues to estimate that it will be able to repay debt maturities in 2026 and 2027.
