Overview
- A repurchase agreement announced Wednesday puts Intel on track to buy Apollo’s 49% stake in Fab 34 for $14.2 billion, restoring full ownership of the Ireland plant.
- Intel will pay with cash on hand and about $6.5 billion in new debt, and it forecasts earnings per share gains and a stronger credit profile starting in 2027.
- Investors welcomed the move as Intel shares jumped as much as 9% Wednesday after the news.
- Fab 34 in Leixlip uses extreme ultraviolet tools to make chips on Intel 4 and Intel 3 nodes, including Core Ultra PCs and Xeon 6 server processors.
- Apollo paid $11.2 billion for the minority stake in 2024 during a cash squeeze, and Intel now points to a firmer balance sheet under CEO Lip-Bu Tan with more details expected at the April 23 earnings report.