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
Top private equity news of the week
Top private equity news of the week Harvard University is advancing plans to sell approximately...
Edmond de Rothschild launches private equity fund of funds under Eltif 2.0 to expand private investor access
Edmond de Rothschild launches private equity fund of funds under Eltif 2.0 to expand private...
Private equity firms advance bids for Poundland as sale process accelerates
Private equity firms advance bids for Poundland as sale process accelerates The sale of high...