"Intel is paying $14.2 billion to acquire the remaining 49 percent stake in the Irish chip factory Fab 34 from Apollo Global Management, ending the joint venture structure established in 2024."
"CFO David Zinsner stated that the joint venture was appropriate at the time for financial flexibility, but now Intel's stronger financial position makes it logical to regain full ownership of the factory."
"The buyback will be financed with available cash and approximately $6.5 billion in new debt, with expectations of a positive impact on earnings per share over time."
"Fab 34 plays a central role in Intel's global production, manufacturing chips based on Intel 4 and Intel 3 processes, including processors from the Core Ultra and Xeon 6 families."
Intel Corporation is repurchasing its 49 percent stake in the Irish chip factory Fab 34 for $14.2 billion from Apollo Global Management. This move ends the joint venture established in 2024, which provided financial flexibility. CFO David Zinsner noted that Intel's improved financial position justifies regaining full ownership. The buyback will be financed through available cash and new debt issuance. Fab 34 is crucial for Intel's production, manufacturing chips for Core Ultra and Xeon 6 families, essential for AI infrastructure.
Read at Techzine Global
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