Apollo to lead $11bn investment in Intel’s Irish chip plant

Private Equity Wire

Funds managed by private investment firm Apollo Global Management are to lead an investment of $11bn to acquire a 49% equity interest in a joint venture entity related to Intel’s Fab 34 chip manufacturing facility in Leixlip, Ireland.

The deal represents Intel’s second Semiconductor Co-Investment Program (SCIP) arrangement, which is part of the company’s Intel’s Smart Capital strategy, a funding approach designed to “create financial flexibility to accelerate the company’s strategy, including investing in its global manufacturing operations, while maintaining a strong balance sheet”, according to a press statement.

Fab 34 is Intel’s high-volume manufacturing (HVM) facility designed for wafers using the Intel 4 and Intel 3 process technologies. To date, Intel has invested $18.4bn in Fab 34.

Under 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, with Intel holding a 51% controlling interest.

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

The full article is available here. This article was published at Private Equity Wire.