Intel will repurchase a 49% stake in its Ireland manufacturing plant for US$14.2 billion (A$20.42 billion), sending shares up 9%.
The company, which owns the remainder of the Fab 34 chipmaking plant, sold a 49% stake to Apollo Global Management for $11.2 billion in 2024. According to Intel, the purchase was driven by an improved balance sheet due to the increased use of its chips for artificial intelligence.
“Our 2024 agreement was the right structure at the right time and provided Intel with meaningful flexibility, enabling us to accelerate critical initiatives,” said Intel CFO David Zinsner.
“Today, we have a stronger balance sheet, improved financial discipline and an evolved business strategy. We appreciate Apollo’s continued collaboration to reach this outcome as we realign our capital structure with our long-term strategy.”
The purchase will be funded by cash on hand and proceeds from the issuance of $6.5 billion in debt, Intel said.
Intel’s revenue has been stabilising since the Fab 34 sale in 2024. Revenue that year fell by 2%, while in 2025 sales remained flat.
Its free cash flow also rebounded to $2.22 billion, from a loss of $1.50 billion.
Fab 34 produces processors, including the Intel Core Ultra and Intel Xeon 6. Intel will invest to expand Fab 34’s manufacturing capacity, it said.
Intel’s shares closed 8.8% higher at $48.03, and rose a further 0.2% after-hours. Its market capitalisation is $214.16 billion.
