Intel said the agreement is reflective of a strong partnership with Apollo, as well as the organisation’s role in the age of AI.

US technology company Intel has plans to repurchase a 49pc stake in the Leixlip, Co Kildare Fab 34 manufacturing facility, via a partnership with asset manager Apollo Global Management. The deal, which will be valued at $14.2bn, is expected to be funded through cash on hand and proceeds from the issuance of new debt of approximately $6.5bn. 

With work beginning in 2019, Fab 34 was designed to be an advanced semiconductor manufacturing facility. 

There has been significant investment in the plant over the years, with the organisation hitting several important milestones, and currently it is a fabrication facility for products utilising the Intel 4 and Intel 3 process technologies, such as Intel Core Ultra and Intel Xeon 6 processors.

In 2024, it was decided that Intel would sell a 49pc stake in Fab 34 to Apollo Global Management.

At the time, David Zinsner, the chief financial officer at Intel, said that the $11bn deal would give the chipmaker “additional flexibility to execute our strategy as we invest to create the world’s most resilient and sustainable semiconductor supply chain”. Intel also said it would be retaining full ownership and control of Fab 34 and its assets. 

Commenting on the recent announcement, Zinsner said, “Our 2024 agreement was the right structure at the right time and provided Intel with meaningful flexibility, enabling us to accelerate critical initiatives. Today, we have a stronger balance sheet, improved financial discipline and an evolved business strategy.”

Intel said the agreement is reflective of a strong partnership with Apollo, as well as the organisation’s role in the age of AI.

Apollo partner Jamshid Ehsani added, “Our partnership with Intel began at an important stage in the execution of its advanced manufacturing roadmap, where our long-term strategic capital played a meaningful role in accelerating the production of next-generation chip technology.

“Flexibility and alignment are core to how we approach relationships as a long-term, solutions-oriented capital partner, and we are pleased to facilitate this transaction in support of Intel’s evolving strategic and operational priorities.”

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