Intel is making big moves in the semiconductor industry, with reports of advanced talks with Apollo Global Management for an $11 billion investment to build a chip factory in Ireland. The US-based chipmaker is also in discussions with KKR and Stonepeak for a joint venture to fund the semiconductor fabrication facility.
According to sources familiar with the matter, Intel and Apollo are in exclusive talks for the deal, which could be finalized in the coming weeks. KKR and Stonepeak have also emerged as key players in the negotiations.
In addition to the Ireland project, Intel has announced plans to build chip facilities in France, taking advantage of easier European Commission funding rules and subsidies. The company is looking to expand its manufacturing presence in Europe while also focusing on its operations in the US.
Speaking of the US, Intel is planning a massive $100 billion spending spree across four states to boost its manufacturing business and compete with chipmaking giant TSMC. The company has received significant funding from the CHIPS Act and is eligible for federal loans to support its expansion efforts.
Intel CEO Pat Gelsinger has expressed optimism about the investment into US semiconductor factories, expecting it to create around 80,000 jobs. This includes opportunities within the company, construction roles, and indirect jobs for suppliers and related industries.
Despite facing challenges in certain segments like traditional data center and personal computing chips, Intel is forging ahead with its ambitious plans for growth and innovation in the semiconductor space.