Intel buys for $14.2 billion the share of Apollo, an asset management company, in the joint venture linked to the American’s factory based in Leixlip (Fab 34), thus regaining full control of the Irish site that Intel considers to be strategic.Â
Intel reached an agreement to buy the 49% held by Apollo, an asset management company, in the joint venture linked to the American factory in Ireland (Fab 34), for an amount of 14.2 billion dollars. This operation allows Intel to regain full control of this industrial site, which it considers to be strategic, at a time when global demand for semiconductors is growing strongly under the effect, in particular, of the rise of AI.
This buyout comes after a first operation in June 2024during which Apollo invested $11.2 billion to acquire this 49% stake in the Irish joint venture, while the semiconductor manufacturer retained the remaining 51%. This entry into the capital had offered Intel, then in financial difficulty, significant room for maneuver to finance its cutting-edge technologies, in particular the Intel 4 and Intel 3 processes, the most advanced in Europe, as well as the development of the Intel 18A process in the United States. At Apollo, this operation ultimately brings it a significant added value of $3 billion.
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“We thank Apollo for their continued partnership in our journey to build a world-class advanced wafer manufacturing and encapsulation facility built on trust, consistency and operational excellence. Our 2024 agreement provided the right structure at the right time and provided Intel with significant flexibility, allowing us to accelerate our strategic initiatives. Today, we have a stronger balance sheet, strengthened financial discipline and an optimized commercial strategy. We appreciate Apollo’s continued collaboration to achieve this result, as we realign our capital structure with our long-term strategy.”a détaillé David Zinsner, director of financier d’Intel.
The financing of this new operation will be based on Intel’s available cash, in much better financial health than two years ago, and on a debt issue of approximately $6.5 billion. Intel expects a positive impact on its earnings per share from 2027, while maintaining its short-term repayment commitments.
Located in Leixlip, Fab 34 is one of the most advanced facilities in Europe. It produces volume of semiconductors based on Intel 4 and Intel 3 technologies, including Intel Core Ultra and Xeon 6 processors. It is also the only European factory to exploit extreme ultraviolet (EUV) lithography, essential for the most advanced technological nodes. the production of chips in 7nm technology.
Intel invested around $18.4 billion in it. The initial partnership with Apollo made it possible to free up part of this capital while retaining operational control of the site. Now, by taking over the entire joint venture, the group is strengthening its industrial and financial control, while continuing to develop its production capacities.
This operation confirms the central role of Fab 34 in Intel’s roadmap, both for its own needs and for those of its customers via Intel Foundry Services, in a sector in full transformation.
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