Intel buys back Ireland plant stake for $14.2B

Intel has agreed to buy back the 49% stake held by Apollo Global Management in its semiconductor manufacturing facility in Ireland for $14.2 billion, regaining full ownership of the key production site as demand for AI-related chips grows.

The deal involves the company’s advanced fabrication plant in Leixlip, known as Fab 34, which produces chips based on Intel 4 and Intel 3 technologies, including Core Ultra and Xeon 6 processors, News.Az reports, citing Reuters.

Apollo Global Management had acquired the minority stake in 2024 for $11.2 billion as part of a joint venture that helped fund Intel’s manufacturing expansion across Europe and the United States during a period of financial pressure for the chipmaker.

Intel has since undergone major leadership and strategic changes, with CEO Lip-Bu Tan pushing a broad restructuring plan aimed at improving profitability, cutting costs, and strengthening the company’s balance sheet.

The company has also attracted significant external investment, including backing from Nvidia and the U.S. government, which has become its largest shareholder.

Intel said the buyback will be financed through existing cash reserves and approximately $6.5 billion in new debt. The company expects the transaction to improve earnings and strengthen its credit profile from 2027 onward.

The move comes as demand for processors used in data centers continues to rise, driven by the expansion of artificial intelligence workloads and “inference” computing, where AI systems respond to user queries in real time.

Intel said it is now benefiting from stronger financial discipline and an improved business strategy as it seeks to re-establish its position in the global semiconductor industry.

News.Az 

By Aysel Mammadzada