Intel are in “advanced talks” with Apollo to fund a $11 billion Irish chipmaking factory

Intel nears a $11 billion deal with Apollo to build an Irish chipmaking facility

According to the Financial Times, Intel has entered exclusive talks with Apollo Global Management, a private equity firm, to build a new chipmaking facility in Ireland. The deal is reportedly worth $11 billion (approximately £8.72 billion), and will greatly expand the company’s presence on the island.

Last year, Intel started mass producing Intel 4 (4 nanometer) chips in their Leixlip facility in County Kildare. This site is the first place where Intel has utilised Extreme Ultraviolet (EUV) manufacturing techniques for high-volume manufacturing in Europe. In total, Intel employs 5,000 people in Ireland, both at their Leixlip facility in Kildare and in their research and development facility in Shannon, County Claire.

Intel’s ambition is to become the world’s leading semiconductor manufacturer. To achieve this Intel is spending heavily to create new chipmaking facilities in the US and Europe. This lines up well with European and American strategic interests, as both want to shift supply chains away from Asia. This has allowed Intel to benefit from a lot of government funding from both the EU and the US government.

Currently, Intel doesn’t expect its foundry business to break even until 2027. Until then, Intel’s foundry expansion will be a burden on the company’s finances. Even so, these plans should make Intel the top chipmaker in the US and Europe, and may even see them overtake TSMC, today’s leading semiconductor company.

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