Intel closing in on $11 billion deal for Ireland factory funding — Apollo set to pay out 5x Intel's funding goal

Intel’s Leixlip campus
(Image credit: Intel)

Intel is nearing the conclusion of its talks with Apollo Global Management to finalize a deal providing Intel with $11 billion to fund and expand its Fab 34 in Leixlip, Ireland, as reported by the Wall Street Journal. Intel's search for capital has been ongoing since February when Intel was first reportedly seeking $2 billion for the project.

Apollo Global Management has been linked to the fundraising effort since April, when it was reported that Apollo was to enter a joint venture with rival investment firms KKR and Stonepeak to fund the Leixlip project. Apollo emerged as the frontrunner and pulled ahead as a solo partner recently, according to sources familiar with the matter. The companies are expected to finalize their deal in the coming weeks.

Intel's Fab 34 in Ireland has been a boon for the company and its strong long-term relationship with Ireland. Fab 34, a recent addition to Intel's Ireland campus, manufactures the Intel 4 process technology to make compute tiles for Intel's Core Ultra Meteor Lake processors. The fab is the only high-volume semiconductor manufacturer in Europe using extreme ultraviolet (EUV) technology for its workflow, leading speculators to guess that Intel wants Leixlip to expand its production to more ambitious process nodes such as Intel 3, Intel 20A, and Intel 18A, which will see action in Intel's Arrow Lake and Panther Lake families.

The latest news is that current talks hover around an $11 billion deal — five times greater than Intel's initial plans — which makes more sense in the context of Intel's business performance lately. When Intel posted its financial results for Q1 2024, it revealed a loss of $2.5 billion from its foundry unit. Intel has attempted to quell some of this loss with Intel Foundry Services (IFS), its contract chip manufacturing unit that's intended to capitalize off of fabless manufacturers — much like TSMC's relationship with Nvidia.

IFS is still dealing with expenses brought about by Intel's recent push to expand and build new facilities. This results in a short-term loss, so the moneymen at Intel likely pushed to increase the Apollo investment amount to make up for this shortfall.

We continue to watch as this story unfolds, as the best information right now comes from the always ambiguous "sources close to the matter." For more news on Arrow Lake, Panther Lake, and the future of Intel's chip roadmap beyond, yesterday's major Dell leak spilled the beans on Intel's timeline for expanding its CPU stable. Unfortunately for Europe, Intel's Ireland campus will be the closest the continent comes to homegrown CPUs for a while longer, as the first European-based processor for supercomputers from SiPearl has been delayed... again. 

Freelance News Writer
  • Metal Messiah.
    Fab 34, a recent addition to Intel's Ireland campus, manufactures the Intel 4 process technology to make compute tiles for Intel's Core Ultra Meteor Lake processors. The fab is the only high-volume semiconductor manufacturer in Europe using extreme ultraviolet (EUV) technology for its workflow, leading speculators to guess that Intel wants Leixlip to expand its production to more ambitious process nodes such as Intel 3, Intel 20A, and Intel 18A, which will see action in Intel's Arrow Lake and Panther Lake families.

    Given the humdrum progress surrounding all this funding effort, and since Intel has kept its cards close to its chest on this Irish project, there still isn't full clarity whatsoever if the funding is for an entirely new plant, or just to expand an existing one at Leixlip, and/or its R&D campus at Shannon is on target as well.

    However, the company has already spent €17 billion ($18.5 billion) on doubling the available manufacturing space at its Leixlip site. So these three venues would indeed make sense.

    But another possibility is that Intel could also be planning to build an advanced "packaging facility" in Ireland, since the company recently shelved plans to build an advanced packaging and chip assembly plant in Italy, as reported by Reuters.
    Reply
  • NeoMorpheus
    This dirty company has more lives than a cat….
    Reply
  • Amdlova
    NeoMorpheus said:
    This dirty company has more lives than a cat….
    Why dirty... This company has the eagle power lol.
    Reply
  • Geef
    So the company building be named 'Triple i' or 'III' (Intel Inside Ireland) or similar 'The AyeYaiYai Building.'
    Reply
  • Don Frenser
    Another reason not to buy anything intel inside.
    Reply