June 6, 2024 /SemiMedia/ -- According to reports, Intel will sell a 49% stake in its Irish wafer fab to Apollo Global Management for $11 billion to bring in more external funds for the massive expansion of its factory network.

The Fab 34 in Leixlip, Ireland is Intel's first mass production site using extreme ultraviolet (EUV) lithography machines for Intel 3 and Intel 4 manufacturing processes.

Intel said construction of the fab, located on an existing company site in Leixlip near Dublin, is almost complete and work will be substantially finished in June.

"This transaction allows us to share our investment with an established financial partner on favorable terms," said Intel Chief Financial Officer David Zinsner.

"This announcement highlights Intel's continued progress on its transformation strategy. The company continues to make progress creating financial flexibility and accelerating its strategy, including investing in its global manufacturing operations, while maintaining a strong balance sheet," Intel said.

Under the terms of the agreement, Intel will purchase a minimum output from the fab. The transaction, which is expected to close in the second quarter, will allow Intel to redeploy some of its investment in the project to other parts of the business.