Intel (INTC) Stock Rises 6% as Company Buys Back Ireland Chip Plant Stake for $14.2 Billion

TLDR

• Intel agreed to buy Apollo Global Management’s 49% stake in Fab 34, its Ireland chip plant, for $14.2 billion.
• The deal will be funded with cash on hand and roughly $6.5 billion in new debt.
• Apollo originally paid $11.2 billion for the stake in 2024 when Intel needed a cash infusion.
• Intel expects the deal to boost earnings per share and strengthen its credit profile from 2027.
• Intel stock rose 6% on the news Wednesday morning.

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Intel has agreed to buy back Apollo Global Management’s 49% stake in its Fab 34 chip manufacturing plant in Ireland for $14.2 billion, taking full ownership of the facility.

Apollo acquired the stake in 2024 for $11.2 billion, giving Intel a cash lifeline at a time when the company was under serious financial pressure.

Intel will fund the purchase using cash on hand along with around $6.5 billion in new debt. The company expects the transaction to boost earnings per share and improve its credit profile starting in 2027.

Intel Corporation, INTC

CFO David Zinsner said the company is in a better position today than when the original deal was struck. “Today, we have a stronger balance sheet, improved financial discipline and an evolved business strategy,” he said.

Fab 34 is located in Leixlip, just outside Dublin. It produces chips using Intel 4 and Intel 3 process technologies, including Core Ultra processors for PCs and Xeon processors for servers.

It was also Intel’s first high-volume manufacturing site to use extreme ultraviolet lithography machines — a key step in producing advanced chips.

A Company in Turnaround Mode

Intel has been through a lot since the Apollo deal was first struck. The company changed CEOs, with Lip-Bu Tan taking the top job and launching an aggressive restructuring that included job cuts and asset sales.

Nvidia has made a major investment in Intel, and the U.S. government is now the company’s largest shareholder after pumping in billions of dollars.

After missing most of the AI boom, Intel is now seeing rising demand for its central processors used in data centers. That demand is being driven by inference — the process AI tools like ChatGPT use to respond to queries.

Intel is also pushing forward on its 18A manufacturing technology. Zinsner said earlier this month that 18A may be opened up to external customers after being largely kept for internal use in 2024.

Apollo Signs Off

The deal marks a full circle moment for the Ireland plant — from a financial lifeline arrangement to full Intel ownership as the company’s footing improves.

Intel’s 18A technology remains a key focus, with potential external customer deals still being evaluated.

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