Intel eyes $11b investment for new Irish chip plant

Chipmaker Intel is in advanced talks with Apollo Global Management for a potential $11 billion investment to build a new manufacturing facility in Ireland, Investing.com reported on Monday, citing Wall Street Journal.

This important investment signifies Intel’s commitment to expanding its chip production capabilities. The new plant in Ireland would join ongoing construction projects in Arizona and Ohio, bolstering Intel’s domestic manufacturing footprint.

Apollo Global Management, through its High Grade Capital Solution division specialising in financing large corporations, has emerged as the frontrunner for the partnership.

Negotiations are ongoing, and an agreement could be finalised in the coming weeks if no unforeseen issues arise. Other investment firms, including KKR and Stonepeak, were previously considered for the project.

Intel’s manufacturing expansion strategy aligns with CEO Pat Gelsinger’s vision to address the ever-increasing global demand for semiconductors.

This move also strengthens Intel’s Foundry Services division, a three-year-old initiative that competes with industry leaders like Taiwan Semiconductor Manufacturing (TSM) and Samsung Electronics in the contract chip-making market.

The news positively impacted Intel’s stock price, with shares rising 1.3 per cent in premarket trading on Monday.