TLDR:
- Intel is seeking $2 billion from venture capital firms for a new fab in Ireland
- The funds will likely be used to upgrade existing infrastructure for more advanced process technologies
According to a recent Bloomberg report, Intel is in talks with Apollo Global Management, KKR & Co., and Stonepeak to establish a joint venture to fund the semiconductor production operations at its fab in Ireland. The company is seeking $2 billion for the project, which will likely involve upgrading the existing infrastructure to support more advanced process technologies such as Intel 3, Intel 20A, and Intel 18A. This expansion is crucial for meeting the demands of Intel’s Foundry unit, which provides contract chip manufacturing services to other companies.
The potential partnership with venture capital firms follows Intel’s previous collaboration with Brookfield Infrastructure Partners in 2022, where Brookfield invested $15 billion for a 49% stake in the expansion of Intel’s Ocotillo campus in Arizona. This strategic financial move allowed Intel to redirect resources and manage its capital expenditures efficiently. The current fundraising efforts in Ireland aim to replicate this model and support Intel’s continued growth and competitiveness in the semiconductor industry.
While the deal with the venture capital firms is still in the negotiation phase and details are subject to change, Intel’s focus on securing funding for its Irish fab highlights the company’s commitment to expanding its manufacturing capabilities and staying at the forefront of semiconductor technology.
