Intel to Buy Back Apollo’s Stake in Irish Chip Venture

(MENAFN) US semiconductor producer Intel declared on Wednesday that it intends to repurchase Apollo Global Management’s 49% ownership in their Fab 34 joint venture located in Ireland for $14.2 billion, as the company adjusts its capital framework to align with long-term strategic objectives.

The finalized agreement represents a move to bolster Intel’s financial position and demonstrates confidence in the increasing importance of central processing units (CPUs) amid the era of artificial intelligence, the company stated.

Funds and affiliates managed by Apollo had led an $11.2 billion investment in 2024 to acquire their 49% interest, supplying Intel with capital similar to equity while maintaining balance sheet robustness and fiscal flexibility.

Intel noted that this investment allowed the firm to redirect resources toward strategic initiatives, such as expediting the development of Intel 4 and Intel 3 process technologies in Europe, along with Intel 18A, which is described as “its most advanced process developed and manufactured in the US.”

“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,” Intel Chief Financial Officer David Zinsner commented.

Apollo Partner Jamshid Ehsani added that the company’s strategic capital had been instrumental in supporting Intel’s advanced manufacturing roadmap and next-generation chip production.

MENAFN04042026000045017167ID1110942141