The report states that Intel is close to reaching a financing agreement with asset management company Apollo, and the Intel Ireland wafer plant is expected to receive $11 billion in construction funds.

Insiders have revealed that Intel and Apollo are in exclusive negotiations, and if nothing unexpected happens, the two sides are expected to officially reach a transaction agreement in the coming weeks.

Ireland is the location of Intel's first EUV lithography wafer fab34 and an important non US production base.

▲ Intel Ireland Lexlip Park

Bloomberg reported in January that Intel plans to raise $2 billion to expand its Fab34 factory, which is much smaller than the $11 billion reported by The Wall Street Journal yesterday. Currently, it appears that Intel has carefully considered further expanding the construction scale of its Irish project.

In fact, Apollo is not the only asset management company that has approached Intel for project financing in Ireland. According to another Bloomberg report at the end of April, companies competing for the financing contract also include KKR and Stonepeak.

The three companies originally planned to form a joint venture to achieve joint capital injection, but recently Apollo and Intel reached a consensus to invest separately.

Apollo's investment plan for Intel's Irish wafer fab is expected to follow Brookfield's precedent: Brookfield reached an agreement with Intel in 2022 to exchange $15 billion for a 49% stake in the Arizona wafer fab project.

The funds raised from Apollo will help Intel upgrade its offshore production capacity and meet the needs of internal and external customers for larger wafer foundry scales and more advanced processes.

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