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By Asma Adhimi
Intel Corporation is moving to regain full ownership of a key European manufacturing asset, announcing plans to repurchase the 49% equity stake in its Fab 34 joint venture in Ireland from Apollo Global Management for $14.2 billion. The deal signals renewed confidence in Intel’s financial position and the growing importance of CPUs in the AI era.
The transaction highlights Intel’s continued commitment to strengthening its global manufacturing footprint while reshaping its capital structure.
Under the definitive agreement announced April 1, Intel will repurchase the 49% equity interest in the joint venture tied to Fab 34, a high-volume semiconductor fabrication facility located in Ireland. The fab plays a central role in Intel’s European manufacturing strategy and supports production of chips using the Intel 4 and Intel 3 process technologies.
Fab 34 manufactures processors including Intel Core Ultra and Intel Xeon 6, both key components in systems designed for AI workloads and next-generation data center infrastructure.
The repurchase follows a 2024 investment in which Apollo-managed funds acquired the 49% stake for $11.2 billion. At the time, the deal provided Intel with equity-like capital while helping preserve its balance sheet strength during a period of heavy investment in advanced manufacturing.
That earlier transaction also enabled Intel to accelerate the rollout of multiple process nodes, including Intel 4 and Intel 3 in Europe, and the Intel 18A process in the United States.
Intel CFO David Zinsner said the original partnership served its purpose during a critical phase of the company’s manufacturing expansion.
“We thank Apollo for their ongoing partnership on our journey to build a world-class wafer fabrication and advanced packaging foundry anchored in trust, consistency, and execution,” said David Zinsner, Intel CFO. “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. We appreciate Apollo’s continued collaboration to reach this outcome as we realign our capital structure with our long-term strategy.”
Apollo also emphasized the collaborative nature of the partnership and the role its investment played in Intel’s manufacturing roadmap.
“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,” said Apollo Partner Jamshid Ehsani. “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.”
Intel plans to fund the buyback using cash on hand combined with approximately $6.5 billion in newly issued debt. The company expects the transaction to become accretive to ongoing earnings per share while improving its credit profile starting in 2027.
Ireland remains a key hub for Intel’s manufacturing operations. The company continues to invest heavily in its Irish campus to expand capacity and support the growing demand for chips used in AI-enabled computing systems.
The move to fully regain control of Fab 34 reinforces the strategic importance of European semiconductor production as global demand for advanced processors continues to rise.
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