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Intel Partners With Equity Firm Apollo in Irish Chip Plant; David Zinsner Quoted

Intel Partners With Equity Firm Apollo in Irish Chip Plant; David Zinsner Quoted

Intel and New York-based private equity firm Apollo Global Management have entered a co-investment program to fund the chipmaker’s silicon wafer manufacturing plant in Ireland. According to the companies’ statement, Apollo-managed funds and affiliates will invest $11 billion to acquire 49 percent of the Irish plant’s equity, with Intel holding the 51 percent controlling interest in the joint venture facility dubbed Fab 34.

Intel has invested a total of $18.4 billion in the plant, which is designed for high-volume wafer manufacturing. Fab 34, already largely finished, started production of Intel Core Ultra processors on Intel 4 technology in September 2023.

David Zinsner, Intel’s chief financial officer, said the partnership will provide more flexibility for Intel to meet the growing silicon demand in a global semiconductor market that is projected to double in the next five years. “This transaction allows us to share our investment with an established financial partner on attractive terms while maintaining our strong investment-grade credit rating,” he added.

The Apollo partnership is Intel’s second application of its Semiconductor Co-Investment Program designed for financial flexibility and maintenance of a robust balance sheet. In August 2022, the technology company entered into its first SCIP arrangement with Brookfield Asset Management’s infrastructure affiliate to fund the expansion of the Intel Ocotillo campus in Chandler, Arizona.

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