Technology giant Intel announced Wednesday it will purchase back nearly half of its Irish manufacturing facility from Apollo Global Management for $14.2 billion, regaining complete control of the plant as the company’s financial situation strengthens and artificial intelligence fuels processor demand.
Apollo Global Management had purchased the 49% ownership stake in the Leixlip, Ireland facility for $11.2 billion in 2024 through a joint venture agreement. The sale provided Intel with crucial funding during a difficult period to support its manufacturing expansion efforts across Europe and the United States.
Since that time, Intel has undergone significant leadership changes, with new CEO Lip-Bu Tan implementing comprehensive restructuring measures to restore the company’s financial health. These efforts have included workforce reductions and selling off assets. The chipmaker has also secured substantial investments from Nvidia and the U.S. government, with the federal government now holding the largest shareholder position.
Following nearly three years on the sidelines of the artificial intelligence revolution, Intel is now seeing increased demand for its central processing units used in data centers, driven by the growth of inference technology that powers AI system responses to user requests.
“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 plans to finance the stake repurchase using existing cash reserves combined with approximately $6.5 billion in new borrowing. Company executives anticipate the transaction will increase profits and improve its credit standing beginning in 2027.
The Irish manufacturing facility, designated as Fab 34, produces semiconductors using Intel’s advanced Intel 4 and Intel 3 manufacturing processes, creating Core Ultra and Xeon 6 processor lines.
