Intel (NASDAQ:INTC) announced it will spend $14.2 billion to repurchase the 49% stake it previously sold to Apollo Global Management in its semiconductor manufacturing facility in Ireland, restoring full ownership of the plant as its financial position improves and demand for chips rises with the growth of artificial intelligence.
Shares of Intel climbed about 6% in early trading on Wednesday following the announcement.
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Apollo (NYSE:APO) paid $11.2 billion in 2024 to acquire the minority stake in a joint venture tied to the facility located in Leixlip, near Dublin. At the time, the transaction provided Intel with a cash injection to help finance the expansion of its manufacturing footprint across Europe and the United States.
Since then, Intel has undergone leadership changes. Current CEO Lip-Bu Tan has launched a major restructuring effort aimed at stabilizing the company’s finances, including workforce reductions and asset sales. The chipmaker has also secured billions of dollars in investments from Nvidia and the U.S. government, which has become its largest shareholder.
After lagging behind in the artificial intelligence boom for nearly three years, Intel is now seeing increasing demand for its data center processors, particularly as AI applications rely on inference—the process through which systems like ChatGPT generate responses to user queries.
“Today, we have a stronger balance sheet, improved financial discipline and an evolved business strategy,” Intel Chief Financial Officer David Zinsner said on Wednesday.
Intel stated that the stake repurchase will be financed using existing cash reserves along with approximately $6.5 billion in new debt. The company expects the transaction to enhance profitability and strengthen its credit profile starting in 2027.
The Irish facility, known as Fab 34, produces chips using Intel 4 and Intel 3 process technologies, including Core Ultra processors for personal computers and Xeon processors used in servers.
Fab 34 was also Intel’s first high-volume manufacturing site for the Intel 4 process, which uses extreme ultraviolet lithography (EUV) technology.
Looking ahead, Intel is shifting focus toward its 18A manufacturing technology, which Zinsner said earlier this month could be offered to external customers after previously being reserved primarily for internal use.