Intel has brought a financial investor on board for its new chip factory in Ireland and is receiving a multi-billion dollar injection. The investment firm Apollo will be the leading investor in acquiring a 49 percent stake in the facility known as Fab 34, as Intel announced on Tuesday. The purchase price was estimated at eleven billion dollars (10.1 billion euros).
Intel has invested 18.4 billion dollars in the factory in Leixlip, Ireland. The facility is largely completed and commenced production last September. The company is currently trying to catch up with competitors after a weak phase and aims to play a key role in shifting part of chip production from Asia to the West.
However, these ambitions require investments amounting to tens of billions of dollars, even with the multi-billion dollar subsidies that chip companies receive in the USA and Europe. Around two years ago, Intel entered into a similar deal with an investment company for a plant in Arizona. In addition, Intel is planning to build a plant in Magdeburg.
In US trading on the NASDAQ, the Intel stock temporarily gained 1.90 percent to $30.60 on Wednesday.
The agreement with Apollo is an important step for Intel to increase its financial flexibility and secure the necessary funds for future expansion projects. This partnership underscores Intel's strategy to involve external investors to manage the enormous costs of building and operating modern chip factories.
