Intel Corp. and Apollo Global Management have recently unveiled a collaborative effort to establish a chip-manufacturing facility in Ireland.
Intel, Apollo Joint Venture Deal Confirmed
Apollo has announced a $11 billion investment and will be acquiring a 49% equity stake from Intel in the Fab 34 facility located in Leixlip, Ireland, according to a statement released on Tuesday (June 4).
It is anticipated that Intel will hold a majority stake of 51% in the venture, with the deal set to be finalized in the second quarter.
According to MarketWatch, the Palo Alto-based chip maker has announced that it has invested a significant amount into the facility so far.
This transaction will enable them to reallocate a portion of that investment to other areas of their business, while still focusing on the expansion of Fab 34.
Intel Nears Completion of Leixlip Plant Construction
According to Intel, the construction of the plant in Leixlip near Dublin is almost finished. The transaction, enabling Intel to allocate its funds to other investments, is set to be finalized in the second quarter of 2024.
Fab 34 has announced its plans to utilize Intel's advanced 4 and 3 manufacturing technologies.
As part of the agreement, Intel has committed to purchasing a specified quantity of the factory's output, which it will then sell directly or on behalf of its customers, Bloomberg reported.
The chipmaker has agreed to prioritize the plant over other facilities in its network when making production decisions. The construction is expected to be mostly finished by June.
The deal provided reassurance that Gelsinger's revival plan would not be overly expensive. Intel's stock has been negatively impacted by a series of disappointing earnings results and the increasing competition from companies like Nvidia Corp.
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