Buyout firm Apollo Global Management will acquire a %49 equity interest in Intel’s manufacturing facility in Ireland for $11 billion, the companies announced Tuesday.
Apollo will take ownership of the Fab 34 facility in Leixlip, Ireland, which is the U.S. chipmaker’s first mass production site for Intel’s 4 manufacturing process, which uses extreme ultraviolet lithography equipment.
The deal, which is expected to close in the second quarter, will allow Intel to reallocate some of its investment in the project to other areas of its business, the company said.
Intel has invested $18.4 billion in the facility to date.
The company has announced plans to build chip factories in Ireland and France in 2022 to benefit from relaxed financing rules and subsidies from the European Commission as the European Union seeks to reduce reliance on supplies from the United States and Asia.
Intel will retain full ownership and operational control of Fab 34 and its assets.
“This transaction allows us to share our investment with an established financial partner on attractive terms,” Intel Chief Financial Officer David Zinsner said.
Intel in April forecast second-quarter sales and profits below market expectations as it faces weak demand for traditional data center and personal computing chips amid a booming market for AI components.