Intel is buying back a 49% equity interest in the joint venture related to its Fab 34 in Ireland for $14.2 billion.
In 2024, Apollo-managed funds and affiliates led an $11.2 billion investment to acquire a 49% equity interest in a joint venture entity related to Fab 34.
The transaction was designed to provide Intel with financial flexibility and enabled the company to unlock and redeploy capital to advance the buildout of Intel 4 and Intel 3 in Europe, and of Intel 18A in the U.S.
“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 Intel CFO David Zinsner in a statement. “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.”
The repurchase of the 49% JV stake is expected to be funded through cash on hand and proceeds from the issuance of new debt of approximately $6.5 billion. The transaction is expected to be accretive to ongoing EPS while strengthening Intel’s credit profile in 2027 and beyond. Intel continues to expect it will retire debt maturities as they come due in 2026 and 2027.
Ireland and Fab 34 remain central to Intel’s global manufacturing footprint and current and future product roadmap. Fab 34 is a high-volume semiconductor fabrication facility for products utilizing the Intel 4 and Intel 3 process technologies, including Intel Core Ultra and Intel Xeon 6 processors. Intel continues to make significant capital investments in its Ireland campus to expand manufacturing capacity, strengthen execution, and deliver for customers building next-generation AI-enabled systems.
