HomeBussinessIntel in talks to fund $11bn Irish chip expansion

Intel in talks to fund $11bn Irish chip expansion

Date:

Related stories

Roscommon v Mayo : Preview, Stats, Teams, Live Scores & Betting

Group 2: Roscommon v Mayo – GAA Championship Showdown Match Preview The...

Irish golf prodigy Tom McKibbin ready for tough test as he defends Open crown

TOM MCKIBBIN hopes a defense of his European Open...

Westmeath v Galway : Preview, Stats, Teams, Live Score & Betting

Group 1: Westmeath v Galway – GAA Championship Clash Match...

ICC T20 World Cup 2024: SWOT Analysis Of Team Ireland

The Irish cricket team shows a mix of promise...

Ladies Gaelic Football Association unveils 50th anniversary commemorative jersey – Ladies Gaelic Football

https://www.youtube.com/watch?v=YAlH5FsrCbo THE Ladies Gaelic Football Association is delighted to unveil...
spot_imgspot_img

Intel CEO Pat Gelsinger has pressed governments for aid. Photo: Patrick T. Fallon/Bloomberg

Intel is in advanced talks with Apollo Global Management over a deal that would have the investment firm providing more than $11bn in funding for a chip manufacturing plant in Ireland, the Wall Street Journal said.

The two companies are in exclusive talks and could reach an agreement in the coming weeks, the newspaper said, citing people familiar with the discussions who it didn’t identify.

The potential partnership comes as superpowers around the world earmark hundreds of billions of dollars for companies like Intel to build the next generation of semiconductor manufacturing in their backyards.

The US and European Union have led these funding efforts, in part as a means of challenging China for chip dominance but also as a broader effort to lessen their dependency on Asian supplies.

Apollo and Intel declined to comment. Other alternative asset managers in addition to Apollo, including KKR and Stonepeak, had also previously held talks to fund the Intel facility in Ireland, Bloomberg News reported last month.

Intel Chief Executive Officer Pat Gelsinger has been working to diversify the company’s manufacturing operations outside of Asia, which dominates chip production today. He’s also striving to restore the chip pioneer’s technological leadership after companies including Nvidia Corp. and Taiwan Semiconductor Manufacturing eclipsed its capabilities.

As part of Gelsinger’s turnaround efforts, Intel is becoming a so-called foundry, a contract manufacturer that makes chips for other companies. In April, Intel’s shares tanked after the company said its new foundry division had sales of $18.9bn in 2023, down from $27.5bn the previous year, and that operating losses at the new unit had widened.

The chipmaker warned at the time that it may not reach a break-even point for several more years.

Intel has already poured billions into chip plants around the world. The company said in December that it was investing $25bn in Israel after securing $3.2bn worth of incentives from the nation’s government. In June, it struck a deal with Germany to invest around €30bn in semiconductor operations.

A pact with Apollo would follow on a previous transaction in which Brookfield Infrastructure Partners agreed to invest as much as $15bn for a stake in Intel’s manufacturing expansion in Arizona. (Bloomberg)

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

spot_img