Intel repurchases $14.2B stake in Irish chip plant amid AI-driven turnaround
Intel has agreed to buy back a 49% stake in its Irish Fab 34 facility from Apollo Global Management for $14.2 billion. The move comes as the company's financial position strengthens, supported by rising demand for AI processors and recent leadership changes. Shares rose by 6% after the announcement. The original deal in 2024 saw Apollo invest $11.2 billion for the stake when Intel faced funding challenges. Since then, the company has undergone major restructuring under new CEO Lip-Bu Tan, including layoffs and asset sales. A shift in strategy, combined with US government and Nvidia investments, has improved Intel's financial health.
The Fab 34 plant in Ireland produces semiconductors using Intel 4 and Intel 3 technologies. It manufactures Core Ultra processors for PCs and Xeon chips for servers, marking Intel's first high-volume site to use extreme ultraviolet lithography. The repurchase will be funded through cash reserves and $6.5 billion in new debt.
Intel's CFO, David Zinsner, noted that the company now has a stronger balance sheet and clearer business focus. The transaction is expected to boost earnings per share and credit ratings starting in 2027. Growing demand for AI-driven data centre processors has also lifted Intel's stock by up to 10%. The $14.2 billion buyback reflects Intel's recovery and strategic shift since 2024. With improved finances and rising AI-related sales, the company aims to strengthen its position in semiconductor manufacturing. The deal is set to deliver long-term financial benefits from 2027 onward.
