ISTANBUL

US chipmaker Intel announced Wednesday that it will repurchase Apollo Global Management’s 49% equity stake in their Fab 34 joint venture in Ireland for $14.2 billion, as the company realigns its capital structure with long-term strategic goals.

The definitive agreement marks a step in strengthening Intel’s balance sheet and reflects confidence in the growing role of central processing units (CPUs) in the age of artificial intelligence, the company said.

Apollo-managed funds and affiliates had led an $11.2 billion investment in 2024 to acquire their 49% stake, providing Intel with equity-like capital while preserving balance sheet strength and financial flexibility.

Intel said that investment enabled it to redeploy capital toward strategic priorities, including accelerating the buildout of Intel 4 and Intel 3 process technologies in Europe, as well as Intel 18A, described as its most advanced process developed and manufactured in the US.

“We thank Apollo for their ongoing partnership on our journey to build a world-class wafer fabrication and advanced packaging foundry anchored in trust, consistency, and execution,” Intel Chief Financial Officer David Zinsner said.

Apollo Partner Jamshid Ehsani said the firm’s strategic capital had played a meaningful role in supporting Intel’s advanced manufacturing roadmap and next-generation chip production.

“Flexibility and alignment are core to how we approach relationships as a long-term, solutions-oriented capital partner,” Ehsani said, adding that Apollo was pleased to support Intel’s evolving strategic and operational priorities.

Intel said the repurchase will be funded through cash on hand and proceeds from issuing about $6.5 billion in new debt.

The company added that the transaction is expected to be accretive to ongoing earnings per share and strengthen its credit profile in 2027 and beyond. Intel also expects to retire debt maturities as they come due in 2026 and 2027.

Ireland and Fab 34 remain central to Intel’s global manufacturing footprint and product roadmap. Fab 34 is a high-volume semiconductor fabrication facility producing chips based on Intel 4 and Intel 3 technologies, including Intel Core Ultra and Intel Xeon 6 processors.