Intel to pay €12.4bn to buy back Apollo stake in Leixlip plant

Intel reacquires half of its key Irish manufacturing plant, reinforcing its drive to restore chip prowess amid growing AI demand.

The Intel manufacturing plant in Collinstown Park, Leixlip, Co. Kildare.

Intel, the chipmaker aiming to restore its manufacturing prowess, agreed to pay $14.2bn (€12.4bn) to buy back half of a plant in Ireland that it had previously sold to Apollo Global Management.

The transaction will be financed with cash on hand and the issuance of about $6.5bn (€5.7bn) in new debt, Intel said in a statement on Wednesday.

Apollo had paid $11.2bn (€9.7bn) for 49% of what became a joint venture — a business that took ownership of a factory called Fab 34 in 2024. The deal raised cash that Intel said it needed for new production technology at the facility and others in the US.

The latest move marks a shift for Intel, which spent much of 2025 in cost-cutting mode. Chief Executive Officer Lip-Bu Tan, who took the helm in March of that year, slashed jobs, slowed expansion projects and sought to offload businesses.

But Intel got an infusion of cash through a novel agreement with the federal government, a White House-brokered deal that turned the US into one of the company’s biggest backers. Nvidia and SoftBank Group also made multibillion-dollar investments last year.

The Ireland repurchase also reflects Intel’s growing confidence in its business — and the belief that its products can play a bigger role in the boom in spending on AI infrastructure.

Intel was in a different position two years ago, according to Chief Financial Officer Dave Zinsner. The company sold the stake to the investment company as part of a group of transactions needed to raise cash to shore up its finances. After years of sliding sales and market-share losses, Intel’s business had reached the point where there was speculation about whether it could continue on as an independent company.

“Our 2024 agreement was the right structure at the right time and provided Intel with meaningful flexibility, enabling us to accelerate critical initiatives,” Zinsner said in the statement. “Today, we have a strong balance sheet, improved financial discipline and an evolved business strategy.” 

The chipmaker ended 2025 with $37.4bn (€32.5bn) in cash and short-term investments, Intel said in January. It repaid $3.7bn (€3.2bn) of debt in the fourth quarter, and the company has committed to retire other debt as it matures in 2026 and 2027.

Fab 34, the company’s main manufacturing site in Europe, is located in Leixlip, Co Kildare. The factory makes personal computer and server processors.

It currently uses manufacturing techniques called Intel 4 and Intel 3. They’re being replaced by a more advanced technology known as 18A that’s being rolled out first in the company’s US factories.

Bloomberg