Tuesday, May 28, 2024

Intel may get $11 billion ‘boost’ for chip facility in Ireland – Times of India

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Intel is reportedly in advanced talks with Apollo Global Management for $11 billion investment to help build a chip factory in Ireland. Previous reports have suggested that the US-based chipmaker has been in talks with Apollo along with KKR and Stonepeak for a joint venture to fund the company’s semiconductor fabrication facility.
Intel and Apollo are in exclusive talks for the deal, which could be signed in the coming weeks, a report by The Wall Street Journal said, citing people familiar with the matter.It added that KKR and infrastructure investor Stonepeak recently pulled ahead.
Intel announced plans in 2022 to build chip facilities in Ireland and France as it seeks to benefit from easier European Commission funding rules and subsidies, news agency Reuters reported.

Intel manufacturing expansion in the US

The development comes as Intel looks to expand its presence in the US with a planned $100-billion spending spree across four states. The company received $8.5 billion in CHIPS Act funding and is eligible for up to $11 billion in federal loans. Intel is looking to boost its manufacturing business and catch up with chipmaking rival TSMC.
Intel CEO Pat Gelsinger said that the investment into US semiconductor factories is expected to create around 80,000 jobs. These will include company and construction jobs, and indirect jobs for suppliers and adjacent industries.
Last month, Intel forecast second-quarter revenue and profit below market estimates as it faces weak demand for its traditional data centre and personal computing chips amid a huge demand for AI components.

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