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On June 4, Apollo Global Management, a leading buyout firm, announced the acquisition of a 49% stake in a joint venture associated with Intel's latest manufacturing facility in Ireland. The acquisition, costing $11 billion, would see Apollo delve into the Fab 34 joint venture in Leixlip, Ireland - Intel's virgin operational site for high-volume Intel 4 manufacturing process that utilizes extreme ultraviolet lithography machines.

Expected to conclude by the second quarter, the agreement will enable Intel to reallocate a portion of its investment from this project to diversify its business portfolio. As per the company's disclosure, a hefty $18.4 billion has been invested in the facility up till now.

Intel, in 2022, announced its plan to establish chip factories in Ireland and France with an aim to profit from the lenient funding regulations and subsidies provided by the European Commission. This endeavor aligns with Europe's strategy to mitigate its dependency on U.S. and Asian supply chains.

Retaining absolute ownership and operational control over the factory, the joint venture secures exclusive rights to produce chips in the facility. To quote David Zinsner, Intel's CFO, "This transaction allows us to share our investment with an established financial partner under attractive terms."

Despite falling short of the projected revenue and profit in April due to low demand for its conventional data center and personal computing chips, Intel remains optimistic about the escalating market for AI components.

Editor：Lulu

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