Intel Invests $14.2B to Regain Complete Control of Irish Chip Plant
Intel Corporation announced on Wednesday that it will invest a staggering $14.2 billion to repurchase Apollo Global Management’s 49% stake in its Fab 34 manufacturing facility in Leixlip, Ireland. This move signifies a dramatic turnaround from the company’s struggles just two years ago.
The chipmaker will finance the transaction with cash reserves and approximately $6.5 billion in new debt. Following the announcement, Intel shares surged more than 10%, reflecting investor confidence in the company’s improved financial position and the AI-driven demand for its processors.
Apollo initially invested $11.2 billion for the stake in 2024 when Intel was in dire need of cash to fund its manufacturing expansion across Europe and the United States. This deal provided Apollo with a 29% return in just two years. Since then, Intel has undergone a significant transformation under the leadership of CEO Lip-Bu Tan, who assumed the position in March 2025 and implemented aggressive restructuring, including job cuts and asset sales.
The Irish plant, known as Fab 34, manufactures chips using Intel’s Intel 4 and Intel 3 process technologies. These include Core Ultra processors for PCs and Xeon processors for servers. Fab 34 was Intel’s first high-volume manufacturing site to use extreme ultraviolet lithography machines. The company anticipates that this deal will enhance profit and fortify its credit profile from 2027 onwards.
Intel concluded 2025 with $37.4 billion in cash and short-term investments. It has also received billions of dollars in investments from Nvidia and the U.S. government, its largest shareholder currently.
Source: Bloomberg