Intel scores $11B investment from Apollo for Irish chip fab

Intel Corporation (INTC) has secured an $11 billion investment from Apollo Global Management (APO) for its Irish manufacturing facility. Under the terms of the agreement, Apollo will acquire a 49% stake in the chipmaker’s Irish manufacturing operations, while Intel retains a controlling 51% interest.

Yahoo Finance’s Dan Howley breaks down the details of the deal.

Note: Apollo Global Management is a majority owner of Yahoo, Yahoo Finance’s parent company.

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This post was written by Angel Smith

Video Transcript

Well.

And also you mentioned Intel Intel getting $11 billion in investment from Apollo for an Irish chip fab.

Um, that is, according to reporting originally from Bloomberg News this morning.

And we should mention Yahoo, the parent company.

Uh, Apollo is the parent company of Yahoo.

Rather.

What do we know about Intel’s role in that?

And to what extent?

That’s a big deal.

$11 billion.

Sounds like a lot.

But is it a lot in the spectrum of for for a fab?

Yes.

I mean, look, that’s This is, uh, their Fab 43.

I believe, uh, in in Ireland.

And, uh, Intel will maintain a majority ownership of it.

Uh, Apollo will essentially have 49% intel, 51%.

Uh, and so Intel will, uh, more or less end up buying some of its chips from itself, uh, through this deal, but it does allow them to free up some cash to go ahead and invest in other areas that they need to build out.

So this is just part of their strategy where they’re trying to be more flexible.

Uh, they’re clearly trying to increase the number of fabs they have.

Obviously, they got some of that government funding from the Chips Act.

And so this is just one of the the leverage that they’re pulling to try to build that out.

They want to, uh, get the, uh, position.

They say they’re about to get the position.

As far as leadership in overall technology capabilities, take that away from TS MC.

Uh, that’s what Pat Gelsinger has been, uh, pointing to They have their foundry, uh, programme that.

They’re doing where I mean, right now they’re just intel chips, Essentially.

But they have Microsoft as a customer as well as other customers that they talked about but have not, uh, let people know very much about, uh And then, uh, they’re going to end up, uh, pushing that forward.

They’re not going to take the lead as far as capacity to build chips.

TS MC is just leaps and bounds ahead, but they’ll be building out more and more.

And this is all part of that huge chip, a push that the US is doing.

Turns out every other country is doing it as well, though, so we’ll have to see how much of an edge that gives the US if anything, but it should increase our capacity overall