Intel and Apollo Announce $11 Billion Joint Venture in Ireland
In a groundbreaking move, Intel Corporation (Nasdaq: INTC) and Apollo (NYSE: APO) have agreed to a joint venture that will see Apollo-managed funds and affiliates investing $11 billion to acquire a 49% equity interest in a joint venture entity related to Intel’s Fab 34 in Leixlip, Ireland. This strategic partnership marks Intel’s second Semiconductor Co-Investment Program (SCIP) arrangement and is set to have a significant impact on the semiconductor industry.
Intel’s Fab 34 is a cutting-edge high-volume manufacturing facility in Leixlip, Ireland, specializing in wafers using Intel 4 and Intel 3 process technologies. With an initial investment of $18.4 billion in Fab 34, Intel aims to reallocate a portion of this investment while continuing to expand the facility as part of its transformation strategy. The joint venture will have the rights to manufacture wafers at Fab 34 to meet the demand for Intel’s products and provide capacity for Intel Foundry customers.
This transaction not only enhances Intel’s financial flexibility but also accelerates the company’s strategy to regain process leadership and expand its global manufacturing operations. With the joint venture expected to close in the second quarter of 2024, Intel is poised to strengthen its position in the semiconductor market and drive innovation in the industry.
As the semiconductor market continues to evolve, partnerships like the one between Intel and Apollo will play a crucial role in shaping the future of technology. The joint venture represents a major step forward in building a resilient and sustainable semiconductor supply chain, paving the way for new advancements in AI technology and sustainable power generation. With Intel and Apollo at the helm, the possibilities for growth and innovation in the semiconductor industry are limitless.