Intel Announces $11Billion Sale of Fab34 Wafer Fab 49% Equity to Apollo

TapTechNews June 5 news, Intel officially released a press release on the 4th of local time, announcing that it will sell 49% of the equity of Fab34 wafer fab to funds and affiliated companies under Apollo at a price of 11 billion US dollars (TapTechNews note: currently about 79.64 billion Chinese yuan).

This is the second SmartCapital strategic transaction reached by Intel: Intel previously signed a similar contract with another asset management company, Brookfield, in 2023 to sell 49% of the equity of its Arizona factory expansion project for 15 billion US dollars.

Fab34 in Leixlip, Ireland is Intel's currently most advanced mass-production logic wafer factory, which took the lead in achieving large-scale mass production of Core Ultra processors based on Intel4 process in September 2023.

At present, this factory also has Intel3 manufacturing capacity and is currently producing the Xeon 6 performance core processor GraniteRapids chip.

According to the agreement, the joint venture established by Intel and Apollo will have the right to manufacture wafers at Fab34 to support the long-term demand for Intel products and provide capacity for Intel foundry customers.

Intel will hold 51% of the shares of this joint venture and continue to have the ownership and operational control of Fab34 wafer fab and its assets.

In the future, this enterprise will sell the produced wafers to Intel in the form of cost plus profit. Intel promises to complete the expansion of Fab34 and purchase at least a specified number of wafers from this joint venture for itself and external customers.

Intel's chief financial officer, David Zinsner, said: This transaction enables us to share our investment with a mature financial partner under attractive conditions while maintaining our strong investment-grade credit rating.

Intel's transaction with Apollo is expected to be completed within this month.