Apollo Global Management (APO.N) has agreed to acquire a 49% equity interest in Intel’s (INTC.O) Fab 34 joint venture in Leixlip, Ireland, for $11 billion. The deal, announced on Tuesday, involves Intel’s first high-volume facility for its Intel 4 manufacturing process, which utilizes extreme ultraviolet lithography machines. Scheduled to close in the second quarter, the transaction will allow Intel to reallocate parts of its investment in the project to other areas of its business. To date, Intel has invested $18.4 billion in the Leixlip facility.
The agreement enables the joint venture to produce chips at the Irish plant while Intel maintains full ownership and operational control. “This transaction allows us to share our investment with an established financial partner on attractive terms,” said Intel’s Chief Financial Officer, David Zinsner. This strategic move comes as Intel navigates a challenging market landscape, with weaker demand for its traditional data center and personal computing chips, despite the rising market for AI components.