Intel re-acquires Fab 34 in Ireland, a deal worth over $14 billion, half financed through debt

Intel Corporation has announced the re-acquisition of 49% of the joint venture related to Fab 34 in Ireland, a stake previously held by Apollo Global Management. The operation is valued at $14.2 billion and marks a realignment of the company's financial structure.

In 2024, some funds managed by Apollo invested $11.2 billion to acquire a stake in the facility. This provided Intel with equity-like capital without burdening its balance sheet, ensuring financial flexibility and enabling the support for the development of advanced production nodes.

With the new agreement, Intel aims to strengthen direct control over its manufacturing activities. The financing of the operation will occur through available liquidity and the issuance of new debt of approximately $6.5 billion. The company expects a positive impact on earnings per share and an improvement in its credit profile starting from 2027.

Fab 34 represents a key asset in the group’s industrial strategy. It is a high-volume production facility dedicated to the Intel 4 and Intel 3 processes, technologies used for chips such as Intel Core Ultra and Intel Xeon 6. These products play a central role in the development of advanced systems based on artificial intelligence.

Meanwhile, Intel will continue to invest in the development of the Intel 18A node, currently the most advanced designed and produced in the United States. The objective is to strengthen its position in the production of next-generation semiconductors, where CPUs play an increasingly relevant role in the AI era.

Ireland thus remains a pillar of the company's global manufacturing presence. The campus will continue to receive investments to increase manufacturing capacity and improve industrial execution, elements considered crucial to support the growing demand for hardware solutions for workloads related to artificial intelligence.