Intel Corp (NASDAQ:INTC, ETR:INL) has announced a joint venture with Apollo-managed funds that will see $11 billion pumped into its semiconductor plant in Leixlip, Ireland.
Intel’s chief finance officer David Zinsner said the investment will “give us additional flexibility to execute our strategy as we invest to create the world’s most resilient and sustainable semiconductor supply chain”.
“Our investments in leading-edge capacity in the US and Europe will be critical to meet the growing demand for silicon, with the global semiconductor market poised to double over the next five years," said Zinsner.
The joint venture will manufacture wafers for Intel's semiconductor fabrication customers.
Under chief executive Pat Gelsinger, Intel has been seeking to increase its competitiveness in the highly specialised microchip manufacturing (or foundry) industry that is dominated by two main players- Taiwan Semiconductor Manufacturing Company and Samsung.
Intel’s foundry division lost more than $7 billion the last financial year, though Gelsinger called it “the trough for foundry operating losses”.
Intel has struggled to attract blue-chip third-party customers who retain close professional relationships with TSMC and Samsung.
As part of its foundry ambitions, Intel has tapped billions of dollars in government grants under the 2022 Chips and Science Act.
Intel opened the Fab 34 facility in Ireland in September 2023.