April 1 (Reuters) - Intel (INTC.O) said it would spend $14.2 billion to buy back the 49% stake it sold to Apollo Global Management in its Ireland manufacturing facility, taking full ownership of the plant as its finances improve and AI drives demand for its processors.
Apollo had in 2024 spent $11.2 billion to acquire the stake in a joint venture related to the plant in Leixlip, Ireland, giving the then-struggling chipmaker a cash infusion to fund its manufacturing expansion in Europe and the United States.
Intel has since changed CEOs, with current top boss Lip-Bu Tan pursuing an aggressive restructuring to repair the company’s finances, including job cuts and asset sales. The company has also received billions of dollars in investments from Nvidia and the U.S. government, which is now its biggest shareholder.
After sitting out the artificial intelligence boom for nearly three years, demand is also rising for its central processors used in data centers due to the rise inference, the process by which AI tools respond to user queries.
“Today, we have a stronger balance sheet, improved financial discipline and an evolved business strategy,” Intel Chief Financial Officer David Zinsner said on Wednesday.
Intel said the stake buyback would be funded with cash on hand and about $6.5 billion of new debt. It expects the deal to boost profit and strengthen its credit profile from 2027.
The Ireland plant, known as Fab 34, produces chips based on its Intel 4 and Intel 3 technologies, including Core Ultra and Xeon 6 processors.

Intel announced a $14.2 billion buyback of Apollo's 49% stake in Ireland's Fab 34, a move seen as a positive sign of the company's financial recovery and strategic shift. Following cost-cutting and efficiency-enhancing measures led by CEO Li-Wu Chen and multiple capital injections, Intel has regained control of its core manufacturing assets during the window of opportunity presented by the explosive growth in AI computing power demand.

Intel announced a $14.2 billion buyback of Apollo's 49% stake in Ireland's Fab 34, a move seen as a positive sign of the company's financial recovery and strategic shift. Following cost-cutting and efficiency-enhancing measures led by CEO Li-Wu Chen and multiple capital injections, Intel has regained control of its core manufacturing assets during the window of opportunity presented by the explosive growth in AI computing power demand.

Intel buys back its Irish factory; financial alarm averted?

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- Intel plans to spend $14.2 billion to regain full ownership of its Ireland manufacturing facility, previously partially owned by Apollo Global Management.  
- The acquisition aims to bolster Intel's finances as demand for its processors rises, particularly in artificial intelligence applications.  
- Funding for the buyback will come from existing cash and new debt, with expectations of profit increases and a strengthened credit profile by 2027.

Reuters

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Intel to buy back Apollo stake in Ireland factory for $14.2 billion