Apollo Global Management To Acquire 49% Stake In Intel's Ireland Chip Plant Venture For $11 Bln

(RTTNews) - The private-equity firm Apollo Global Management Inc. (APO) agreed to acquire a 49% equity interest in a joint venture related to Intel Corp.'s (INTC) chip manufacturing plant in Ireland for $11 billion, the companies said in a statement on Tuesday.

Apollo will acquire the stake in the Fab 34 joint venture in Leixlip, Ireland. Fab 34 is Intel's leading-edge high-volume manufacturing (HVM) facility designed for wafers using the Intel 4 and Intel 3 process technologies. To date, Intel has invested $18.4 billion in Fab 34.

As per the agreement, the joint venture will have rights to manufacture wafers at Fab 34 to support long-term demand for Intel's products and provide capacity for Intel Foundry customers. Intel will have a 51% controlling interest in the joint venture. Intel will retain full ownership and operational control of Fab 34 and its assets.

Intel noted that construction of Fab 34 is largely complete, and high-volume manufacturing of Intel Core Ultra processors on Intel 4 technology began there in September 2023. The ramp of Granite Rapids, Intel's next-generation data center product on Intel 3 technology, is also well underway.

The transaction is expected to close in the second quarter of 2024.

Intel is building or expanding factories in Arizona, Ohio, Ireland and several other locations with a view to boost its business amid surging demand for chips.

Intel previously had agreed to a similar $30 billion deal with Brookfield Asset Management.