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Apollo · Capital Structure · Intel · Semiconductor Manufacturing
US chipmaker Intel announced it will repurchase Apollo Global Management’s 49% equity stake in their Fab 34 joint venture in Ireland for $14.2 billion, realigning its capital structure and strengthening its balance sheet with long-term strategic goals.
Apollo-managed funds and affiliates had initially invested $11.2 billion in 2024 to acquire their 49% stake, providing Intel with equity-like capital. Intel will fund the repurchase using cash on hand and approximately $6.5 billion in new debt.
The company expects this transaction to be accretive to ongoing earnings per share and to strengthen its credit profile in 2027 and beyond. Intel also plans to retire debt maturities as they come due in 2026 and 2027.
Intel Chief Financial Officer David Zinsner expressed gratitude for Apollo's partnership, while Apollo Partner Jamshid Ehsani affirmed their role in supporting Intel's advanced manufacturing roadmap. Fab 34 remains a central component of Intel’s global manufacturing footprint, producing chips based on Intel 4 and Intel 3 technologies, including Intel Core Ultra and Intel Xeon 6 processors.