Intel has announced that it is to repurchase a 49% stake in a joint venture linked to its ‘Fab 34’ manufacturing facility in Leixlip, Co Kildare. The agreement marks a significant move for the chipmaker as it strengthens its position in global semiconductor manufacturing amid growing demand for AI-enabled systems.
The repurchase comes less than a year after Intel sold the same stake to Apollo Global Management in June 2024 for $11.2 billion. Under the new deal, Intel will buy back the 49% equity interest for $14.2 billion, reflecting both the strategic importance of Fab 34 and the company’s confidence in its ongoing business momentum.
Intel said the transaction underlines the expanding role of its products in the AI era, alongside a stronger balance sheet and the continued partnership with Apollo. “Ireland and Fab 34 remain central to Intel’s global manufacturing footprint and current and future product roadmap,” the company said in a statement.
The company added that it is continuing to make significant capital investments at its Irish campus to expand manufacturing capacity, improve execution, and support customers developing next-generation AI systems.
In 2024, Apollo-managed funds acquired the 49% stake in Fab 34, providing Intel with a substantial capital injection. Intel said the original deal offered financial flexibility, allowing it to unlock and redeploy capital for strategic initiatives. “Our 2024 agreement was the right structure at the right time and provided Intel with meaningful flexibility, enabling us to accelerate critical initiatives,” said David Zinsner, Intel’s chief financial officer.
Mr Zinsner highlighted that the company now operates with a stronger balance sheet and improved financial discipline, positioning Intel to pursue an evolved business strategy while continuing to advance its wafer fabrication and advanced packaging capabilities. “We thank Apollo for their ongoing partnership on our journey to build a world-class wafer fabrication and advanced packaging foundry anchored in trust, consistency, and execution,” he said.
Industry analysts said the buyback signals Intel’s confidence in Ireland as a key hub for semiconductor manufacturing, as well as its commitment to supporting the AI-driven technology ecosystem. Fab 34, which focuses on high-performance chips, is central to Intel’s efforts to compete globally and meet surging demand for AI and data centre applications.
The transaction also demonstrates Intel’s strategy of balancing external partnerships with internal control over critical manufacturing assets, ensuring the company can respond quickly to market opportunities while maintaining leadership in advanced chip production.
The deal is expected to close later this year, pending regulatory approval, and will reinforce Intel’s long-term plans to expand capacity at its Leixlip campus while strengthening its position in the fast-growing AI and semiconductor markets.
