Affiliates of Apollo Global Management are set to allocate an investment of £11 billion (€10.1 billion) to Intel for the acquisition of a 49% share in a joint venture, relating to a manufacturing facility currently under construction in Ireland. The facility, known as Fab 34, is one of Intel’s main large-capacity manufacturing sites located in Leixlip, Co Kildare. It features advanced wafer fabrication using Intel 4 and Intel 3 process technologies.
In its attempt to capitalise on the relatively lenient funding regulations and subsidies provided by the European Commission, Intel unveiled plans in 2022 to establish chip manufacturing plants in Ireland and France. The company has invested a total of $18.4 billion in the Fab 34 facility, and this sale will allow Intel to free up a part of that investment for reallocating to other sectors of its business.
Intel has a history of engaging with substantial private capital groups to finance the construction of new semiconductor fabrication facilities across the globe. This strategy enables Intel to maintain a majority ownership and manage the operations of the plant, while simultaneously gaining access to the critical capital required to expand its manufacturing capabilities. It also offers investors partial ownership of an asset and a share of its profits.
In 2022, Intel sold up to a 49% share in a chip manufacturing site it is presently building in Arizona. The stake was purchased by Brookfield Infrastructure Partners, a Canadian firm, for $15 billion. This deal was made to source finances for the $30 billion project. – Reuters.