Intel said on the 1st (local time) that it will repurchase 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 rights to the semiconductor wafers produced at Fab 34. Intel will be able to take the wafer revenue from that fab once the equity repurchase is completed.
Fab 34 produces "Intel Core Ultra" and "Intel Xeon 6," Intel's main central processing unit (CPU) lineup, as well as process nodes "Intel 4" and "Intel 3." In 2024, when it was struggling with a cash crunch, Intel sold 49% equity in Fab 34 to Apollo for $11.2 billion.
Regarding the equity repurchase, 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 buyback through cash and the issuance of new liabilities of about $6.5 billion.