Intel said on the 1st (local time) that it would buy back 49% equity in the joint venture (JV) related to "Fab 34," which it had sold to alternative investment manager Apollo Global Management, for $14.2 billion (about 21.4 trillion won).
The JV holds the rights to semiconductor wafers produced at Fab 34. Intel will be able to take the wafer revenue from that fab once the equity buyback is completed.
Fab 34 produces "Intel Core Ultra" and "Intel Xeon 6," Intel's main central processing unit (CPU) product lines, as well as process products on "Intel 4" and "Intel 3." In 2024, when Intel was struggling with a cash crunch, it sold 49% equity in Fab 34 to Apollo for $11.2 billion.
Regarding the equity buyback, Intel said it "reflects the business's growth trajectory, as the role of CPUs is becoming more important and expanding in the age of artificial intelligence (AI), and the financial structure is also strengthening."
Intel will raise the funds needed for the equity repurchase through cash and the issuance of new liabilities of about $6.5 billion.