Funds managed by private investment firm Apollo Global Management are to lead an investment of $11bn to acquire a 49% equity interest in a joint venture entity related to Intel’s Fab 34 chip manufacturing facility in Leixlip, Ireland.
The deal represents Intel’s second Semiconductor Co-Investment Program (SCIP) arrangement, which is part of the company’s Intel’s Smart Capital strategy, a funding approach designed to “create financial flexibility to accelerate the company’s strategy, including investing in its global manufacturing operations, while maintaining a strong balance sheet”, according to a press statement.
Fab 34 is Intel’s high-volume manufacturing (HVM) facility designed for wafers using the Intel 4 and Intel 3 process technologies. To date, Intel has invested $18.4bn in Fab 34.
Under the agreement, the joint venture will have rights to manufacture wafers at Fab 34 to support long-term demand for Intel’s products and provide capacity for Intel Foundry customers, with Intel holding a 51% controlling interest.
The transaction is expected to close in the second quarter of 2024.
Source: Private Equity Wire
Can’t stop reading? Read more
Advent eyes partial exit as Svatantra Microfin plans $250m IPO
Advent eyes partial exit as Svatantra Microfin plans $250m IPO Advent International is preparing...
Sixth Street makes UK football entry with Sunderland AFC Women majority stake
Sixth Street makes UK football entry with Sunderland AFC Women majority stake Sixth Street has...
Pimco lines up $14bn debt package for Oracle’s Michigan data centre project
Pimco lines up $14bn debt package for Oracle’s Michigan data centre project Pacific Investment...