Intel has entered a deal to sell 49% of its facility in Kildare for more than €10bn.
In a statement, Intel said it had entered an agreement with asset management firm Apollo that will see it acquire the equity interest in a joint venture related to Intel’s Fab 34 facility in Leixlip for $11bn (€10.11bn).
The chipmaker said the deal allows them to redeploy the financing to other parts of its business. Intel said it will retain full ownership and operational control of Fab 34 and its assets.
“The announcement highlights Intel’s continued progress in its transformation strategy,” the company said in the statement.
“The company continues to advance to create financial flexibility and accelerate its strategy, including investing in global manufacturing operations, while maintaining a strong balance sheet.”
Intel said that construction of the plant, on an existing company site in Kildare, is “largely complete” and that the manufacturing of semiconductors began there last September. It marked the first use of extreme ultraviolet lithography (EUV) in high-volume manufacturing in Europe.
In addition to Fab 34, Intel maintains a second manufacturing facility in Leixlip, Fab 24. The transaction with Apollo only pertains to Fab 34. The deal is expected to be completed in the second quarter of 2024.