Intel Corporation (INTC) has secured an $11 billion investment from Apollo Global Management (APO) for a manufacturing facility in Ireland. Under the terms of the deal, Apollo will acquire a 49% stake in the chipmaker’s Irish manufacturing operations, while Intel will retain a controlling interest of 51%.
Yahoo Finance’s Dan Howley breaks down the details of the deal.
Note: Apollo Global Management owns a majority stake in Yahoo, the parent company of Yahoo Finance.
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Video Transcript
good.
You also mentioned that Intel will receive $11 billion in investment from Apollo for a semiconductor factory in Ireland.
Well, that’s according to a Bloomberg News report this morning.
And it’s worth mentioning its parent company, Yahoo.
Well, Apollo is the parent company of Yahoo.
Rather than that.
What do we know about Intel’s role in that?
And to what extent?
That’s a big deal.
$11 billion.
That’s quite a lot.
But does that fall pretty much into the fab range?
yes.
So this is, um, their Fab 43.
Well, I think it’s in Ireland.
And Intel will retain majority ownership.
Well, Apollo will basically have 49% information and 51% information.
Through this deal, Intel will more or less be buying some of its chips from the company, but this will free up some funds for Intel to invest in other areas that it needs to build out.
So this is just part of their strategy to become more flexible.
Well, they’re clearly trying to increase the number of fabs.
Apparently, they got some of their government funding from the CHIPS Act.
This is just one of the avenues they are using to build it.
They want to have, um, status.
They say they are on the verge of taking the position.
When it comes to overall technological leadership, you can count on TS MC.
Well, Pat Gelsinger pointed out that they have a foundry program.
So, at this point, we’re basically just using Intel chips.
But they have a customer, Microsoft, and they have other customers that they’re talking to that they haven’t really told people about, and then they end up pushing it.
They’re not going to lead when it comes to chip manufacturing capabilities.
TS MC has come a long way and will continue to evolve.
And this is all part of a larger effort being undertaken by the United States.
But we now know that other countries are doing it as well, so we’ll have to see how much of an advantage it gives the U.S., but overall it should improve U.S. capabilities.
