Photo Credit: Getty Images
Intel said on Wednesday it will spend $14.2 billion to repurchase the 49% stake in its Ireland fabrication facility previously sold to Apollo Global Management, restoring complete ownership of the site as demand for artificial intelligence computing accelerates.
The buyback marks a reversal of a 2024 transaction in which Apollo invested $11.2 billion for a minority interest, providing Intel with crucial capital at a time of financial strain and heavy spending on new manufacturing capacity.
Shares of Intel climbed in early trading following the announcement, reflecting investor optimism around the company's improving balance sheet and strategy under Chief Executive Lip-Bu Tan, who has pushed cost cuts, asset sales and a sharper focus on core operations.
The company said the deal will be financed through existing cash and roughly $6.5 billion in new debt, and is expected to enhance earnings over time while strengthening its credit outlook from 2027.
Executives said Intel's position has improved as demand rebounds for central processing units used in data centers, particularly for inference workloads that power AI systems responding to user queries.
The Ireland facility, known as Fab 34, plays a central role in Intel's global production network, manufacturing chips based on Intel 4 and Intel 3 process technologies, including processors for personal computers and servers.
It was also the company's first high-volume site to deploy extreme ultraviolet lithography, a key step in advancing chip performance and efficiency.
Intel is now directing attention toward its next-generation 18A manufacturing technology, which executives have indicated could eventually be offered to external customers after previously being reserved largely for internal use.
The transaction underscores Intel's effort to regain momentum in a semiconductor industry reshaped by AI-driven demand and intense competition, including from rivals benefiting from the recent boom.
By consolidating ownership of the Irish plant, Intel gains greater control over production, investment decisions and long-term capacity planning, positioning itself to better serve customers building next-generation computing infrastructure.
