Intel Corporation (NASDAQ:INTC) and Apollo (NYSE:APO) have announced a significant partnership, resulting in both companies’ stock prices rising by nearly 2% intra-day today. Apollo is set to invest $11 billion to acquire a 49% equity stake in a joint venture linked to Intel’s cutting-edge semiconductor manufacturing plant, Fab 34, in Leixlip, Ireland.
This investment is a key part of Intel’s second Semiconductor Co-Investment Program (SCIP), which is an integral component of Intel’s Smart Capital strategy. This strategy focuses on enhancing financial flexibility and accelerating the company’s strategic goals.
Fab 34 specializes in high-volume production using Intel 4 and Intel 3 process technologies. To date, Intel has poured $18.4 billion into this facility. The new partnership allows Intel to redirect a portion of this investment into other areas of its business while continuing to advance Fab 34’s development.
The joint venture grants the right to manufacture wafers at Fab 34, ensuring a steady supply for Intel’s products and providing additional capacity for Intel’s foundry customers.
Intel will maintain a 51% controlling interest, preserving full ownership and operational control over Fab 34 and its assets.