Intel Lands Deal to Reclaim Apollo’s 49 Percent Irish Chip Stake

(MENAFN) Intel has struck a definitive deal to reclaim Apollo Global Management's 49% share in their Irish semiconductor joint venture, Fab 34, in a $14.2 billion transaction aimed at bolstering the U.S. chipmaker's financial foundation as it sharpens its long-term strategic focus.

The agreement, disclosed Wednesday, represents a significant capital restructuring move for Intel as demand for central processing units surges alongside the rapid expansion of artificial intelligence infrastructure.

Apollo-affiliated funds had originally poured $11.2 billion into the partnership in 2024 to secure their near-majority stake — a move that handed Intel flexible equity-like financing while keeping its balance sheet intact. That capital injection, Intel said, allowed the company to redirect resources toward critical technological development, including the acceleration of its Intel 4 and Intel 3 process node rollouts across Europe and the advancement of Intel 18A — its most cutting-edge process technology, designed and produced domestically in the United States.

Intel Chief Financial Officer David Zinsner credited the partnership in strong terms, saying: "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."

Apollo Partner Jamshid Ehsani echoed that sentiment, noting that the firm's strategic financing had played a substantive part in pushing Intel's advanced manufacturing ambitions and next-generation chip development forward. "Flexibility and alignment are core to how we approach relationships as a long-term, solutions-oriented capital partner," Ehsani said, affirming that Apollo remained supportive of Intel's shifting strategic and operational direction.

To finance the buyback, Intel plans to draw on existing cash reserves alongside roughly $6.5 billion raised through new debt issuance. The chipmaker projects the deal will be accretive to per-share earnings and improve its overall credit standing from 2027 onward, while also positioning the company to retire debt obligations maturing in both 2026 and 2027.

Fab 34, located in Ireland, continues to serve as a cornerstone of Intel's worldwide manufacturing network. The high-volume fabrication facility produces chips built on Intel 4 and Intel 3 architectures — including Intel Core Ultra and Intel Xeon 6 processors — and remains integral to the company's product pipeline going forward.

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