Intel announced it has reached a definitive agreement to repurchase the 49% equity interest in its Ireland Fab 34 joint venture currently held by Apollo Global Management for $14.2 billion, marking a significant step in reshaping its capital structure and reinforcing its long-term manufacturing strategy.
The transaction reverses a 2024 deal in which Apollo-led funds invested $11.2 billion to acquire the minority stake, providing Intel with capital flexibility while it advanced key semiconductor manufacturing initiatives. With improved financial discipline and a strengthened balance sheet, Intel is now moving to fully reclaim ownership of the facility.
The repurchase will be funded through a combination of cash on hand and approximately $6.5 billion in new debt issuance. Intel expects the deal to be accretive to ongoing earnings per share and to strengthen its credit profile beginning in 2027. The company also reiterated its plans to retire upcoming debt maturities in 2026 and 2027.
Fab 34 in Ireland remains a central pillar of Intel’s global manufacturing footprint. The facility produces chips using Intel 4 and Intel 3 process technologies, supporting products such as Intel Core Ultra and Xeon 6 processors. Intel continues to invest heavily in expanding its operations in Ireland to meet growing demand for AI-enabled computing systems.
The transaction highlights Intel’s broader push to regain greater control over its manufacturing assets while continuing to execute on its advanced process roadmap, including Intel 18A in the United States.
KEY QUOTES:
“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. 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.”
David Zinsner, Chief Financial Officer, Intel Corporation
“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. This mutually beneficial transaction is a testament to how we operate: client-driven and focused on long-term partnership. We’re proud to support Intel’s evolving strategic and operational priorities and look forward to pursuing additional opportunities to work together over time.”
Jamshid Ehsani, Partner, Apollo Global Management
