Intel is about to close a deal worth more than 10 billion dollars to build a factory in Ireland

Intel is about to close a deal worth more than 10 billion dollars to build a factory in Ireland
Intel is about to close a deal worth more than 10 billion dollars to build a factory in Ireland
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Intel is close to closing a deal with private equity firm Apollo Global Management to build a factory in Ireland. This involves 11 billion dollars (more than 10 billion euros).

Intel wants to scale up production, partly to compete with TSMC, The Wall Street Journal reports based on anonymous sources. Apollo manages approximately 671 billion dollars (621 billion euros) in assets worldwide. No further details have been released.

Intel now makes chips on a contract basis, which puts it in direct competition with Taiwan’s TSMC and Samsung. For example, Microsoft has its own semiconductors produced by Intel, while Nvidia may also come knocking.

Growth strategy

Intel’s growth strategy includes building factories and other facilities in America, but also Ireland. The company hopes to benefit from the growing demand for chips. The US government provided the company with a subsidy of 8.5 billion dollars (7.8 billion euros) in March. This happened under the banner of the Chips Act. With this legislation, the Americans want to stimulate chip production on their own soil and be less dependent on countries such as China.

Furthermore, about two years ago, the company concluded a deal worth $30 billion with investor Brookfield Asset Management for the construction of a chip factory in Arizona, for which Intel itself provided 51 percent of the required capital. Ownership of those facilities lies with a separately incorporated entity, in which Intel has a majority stake.

ASML machines to Intel

High-quality technology is required for such factories to produce. In any case, five to six of ASML’s most advanced chip machines will end up at Intel this year. Competitors Samsung and SK Hynix, who also want to work early with the so-called High-NA EUV scanner, may have to wait until the second half of 2025.

After delaying the adoption of EUV, Intel now has a significant lead over chip competitors for such High-NA EUV. The ASML machines are the breeding ground for future chips that will probably appear on the market around 2027.

Also read: ASML will send all High-NA EUV machines to Intel this year

The article is in Dutch

Tags: Intel close deal worth billion dollars build factory Ireland

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