Intel will spend 14 billion US dollars to repurchase shares from Apollo Global Management in its Ireland plant.
According to Zhitong Finance APP, $Intel (INTC.US)$ In order to restore its chip manufacturing capabilities, Intel has agreed to pay $14.2 billion to repurchase half of the shares of a factory located in Ireland that it previously sold to $Apollo Global Management (APO.US)$ . Intel stated in a declaration on Wednesday that this transaction will be financed through existing cash and the issuance of approximately $6.5 billion in new debt.
As of now, Intel's stock price has surged by more than 8% at the start of trading.
Previously, Apollo Global Management acquired a 49% stake in the joint venture for $11.2 billion — this joint venture obtained ownership of the facility named Fab 34 in 2024. Intel stated that this deal provided the necessary funds to introduce new production technologies into its U.S.-based plants and other facilities.
Intel's latest move marks a strategic shift — the company had been in cost-cutting mode for much of 2025. Chief Executive Lip-Bu Tan, who took office in March of that year, implemented significant layoffs, slowed expansion projects, and sought to divest certain operations.
However, Intel secured substantial funding through a novel agreement with the U.S. federal government — brokered by the White House, this agreement made the U.S. one of the company’s largest supporters. NVIDIA (NVDA.US) and SoftBank Group also made multi-billion-dollar investments last year.
The repurchase in Ireland also reflects Intel’s growing confidence in its business and its belief that its products can play a larger role amid a surge in artificial intelligence infrastructure spending.
According to Chief Financial Officer Dave Zinsner, Intel was in a very different position two years ago. At that time, to raise funds and improve its financial situation, Intel sold part of its shares to investment firms as part of a series of necessary transactions. Over the years, Intel’s sales and market share have continued to decline, raising concerns about its business condition and even doubts over whether it could continue operating as an independent company.
“The agreement we reached in 2024 was appropriate at the time, providing Intel with significant flexibility to accelerate key projects,” Zinsner said in the statement. “Today, we have a robust balance sheet, stricter financial discipline, and a more refined business strategy.”
Intel stated in January that it held $37.4 billion in cash and short-term investments as of the end of 2025. The company repaid $3.7 billion in debt during the fourth quarter of the previous year and committed to repaying additional debts maturing in 2026 and 2027.
Fab 34 is Intel’s primary production base in Europe, located in Leixlip, outside Dublin. The plant manufactures processors for personal computers and servers.
Currently, the company employs manufacturing technologies known as Intel 4 and Intel 3, which are being replaced by a more advanced technology called 18A, first introduced in the company’s U.S.-based factories.
Editor/Jayden