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.
Intel announced the sale of the stake to Appollo Global Management in June 2024 for $11.2 billion.
The company has reached a deal to repurchase the 49% equity interest in the joint venture for $14.2 billion.
Intel said the agreement reflects its continued business momentum underpinned by the growing and essential role its products play in the era of AI, a significantly strengthened balance sheet and the strong partnership between Intel and Apollo.
"Ireland and Fab 34 remain central to Intel's global manufacturing footprint and current and future product roadmap," Intel said in a statement.
"Intel continues to make significant capital investments in its Ireland campus to expand manufacturing capacity, strengthen execution, and deliver for customers building next-generation AI-enabled systems," the company added.
In 2024, Apollo-managed funds and affiliates led an $11.2 billion investment to acquire a 49% equity interest in a joint venture entity related to Fab 34, providing Intel with capital.
Intel said the transaction provided it with significant financial flexibility and enabled the company to unlock and redeploy capital.
"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," said David Zinsner, Intel CFO.
"Our 2024 agreement was the right structure at the right time and provided Intel with meaningful flexibility, enabling us to accelerate critical initiatives."
"Today, we have a stronger balance sheet, improved financial discipline and an evolved business strategy," Mr Zinsner said.
