Intel announced its plan to invest $14.2 billion to reacquire the 49% stake previously sold to Apollo Global Management in its manufacturing facility in Ireland, thereby achieving full ownership of the plant as its financial outlook improves and AI boosts demand for its processors.
The chipmaker’s shares surged by more than 10% on Wednesday.
Apollo acquired the stake in a joint venture in 2024 for the facility located in Leixlip near Dublin, providing Intel with much-needed capital to support its manufacturing expansion in both Europe and the US.
Since then, Intel has undergone a CEO transition, with current leader Lip-Bu Tan implementing a robust restructuring plan aimed at reviving the company’s finances through job reductions and asset divestitures. The company has also secured billions in investments from Nvidia and the U.S. government, now its largest shareholder.
After a near three-year absence from the artificial intelligence surge, there’s increasing demand for its central processors designed for data centers, particularly in relation to inference—the method by which AI tools like ChatGPT answer user inquiries.
“Today, we find ourselves with a more robust balance sheet, enhanced financial discipline, and an evolved business strategy,” stated Intel Chief Financial Officer David Zinsner on Wednesday.
Intel revealed that the acquisition of the stake will be financed through existing cash reserves and approximately $6.5 billion in new debt. The company anticipates that this deal will enhance profitability and improve its credit standing by 2027.
The Ireland facility, known as Fab 34, produces chips utilizing Intel 4 and Intel 3 process technologies, including Core Ultra processors for PCs and Xeon processors for servers.
This facility was Intel’s first high-volume manufacturing site for the Intel 4 production process that incorporates extreme ultraviolet lithography machines.
Intel is now directing its focus towards its 18A manufacturing technology, which Zinsner indicated earlier this month may be made available to outside clients after being primarily reserved for internal use last year.
