Intel could sell stake in Leixlip plant as part of multibillion dollar refinancing

A sale of a large minority stake in Intel’s Leixlip plant in Co Kildare could form part of the $11 billion (€10bn) refinancing the US chip-making giant is currently exploring, informed sources have indicated. However, it is not expected to lead to the building of a new Fab manufacturing facility at the Kildare site, with the funds likely to be deployed across the group by Intel.

Intel has previously partnered large private capital groups to finance the construction of new semiconductor fabrication plants. In 2022 the group sold a stake of up to 49 per cent in a chip-making plant it is building in Arizona to Canada’s Brookfield Infrastructure Partners for $15 billion in order to finance the $30 billion project.

Such a move allows Intel to retain majority ownership and control of the plant while giving it access to funding necessary to pursue an expansion of its manufacturing operations. For the investor it offers some ownership of an asset and a share of the profits that it generates.

On Monday it was reported by the Wall Street Journal that Intel had entered exclusive talks with Apollo Global on the $11 billion financing. It is believed to have spent the past year in talks with a number of private capital groups around potential financing options, with the Leixlip plant central to such plans.

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Intel opened its new Fab 34 facility in Leixlip last year. This effectively doubles Intel’s manufacturing space in Ireland, with €17 billion being invested in the plant, which will employ 1,600 new full-time staff when fully operational. Intel employs about 6,500 people here in total.

No comment was available from Intel on the financing talks.

Minister for Finance Michael McGrath said on Tuesday the Government had held a “number of discussions” with Intel on its development plans. However, he declined to comment to reporters in Brussels, where he was attending meetings of EU finance ministers, on the specifics of the talks, adding that he would not discuss “a particular deal until the matter is finalised”.

“Intel is a very important partner of IDA Ireland and the Irish Government and there have been a number of discussions with the company over the last number of months in relation to their development plans,” he said.

Those talks included discussions on the role of private sector investment, as well as “what support the Irish Government can provide through IDA Ireland”, Mr McGrath said.

“We’re very anxious to support companies like Intel who are indispensable to the economic success of our country. There is a very close working relationship, so discussions take place on an ongoing basis between the Government, IDA Ireland and Intel in relation to their future development plans.”

Intel has been in talks to raise financing for an aggressive buildout of semiconductor fabrication plants as it shifts supply chains from Asia to western Europe and North America and modernises its chip-making production facilities to meet rapid advances in artificial intelligence technology.

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