Funds managed by Apollo will invest $11 billion for a 49% stake in a joint venture with Intel for Fab 34, part of Intel's Smart Capital strategy to regain chip technology leadership. Fab 34 is a high-volume plant for Intel 4 and Intel 3 technologies, with significant investments to date.

The deal with Apollo will unlock funds for other business areas while continuing Fab 34 development. Fab 34, utilizing extreme ultraviolet lithography, supports high-volume production of advanced technologies since opening in September 2023. The joint venture at Fab 34 will produce wafers for Intel and external customers, with Intel holding a 51% controlling interest. Intel aims to create a resilient semiconductor supply chain, critical with the global semiconductor market expected to double in five years.

The agreement with Apollo showcases strategic investments for future semiconductor capabilities. Apollo's involvement highlights their ability to provide creative capital solutions for leading corporations and infrastructure. Intel's CFO emphasizes the strategic flexibility gained from the partnership with Apollo. The joint venture's focus on manufacturing wafers at Fab 34 aligns with Intel's long-term product demand and foundry customer support. The transaction allows Intel to maintain a strong credit rating while sharing the investment with Apollo.

Apollo's role underscores their commitment to financing the New Economy and sustainable technologies. Intel's obligation to complete Fab 34's build-out and purchase wafers from the joint venture solidifies their commitment to the partnership. David Zinsner's statement emphasizes the importance of the investment in meeting the increasing silicon demand worldwide. Apollo's significant capital transaction demonstrates their contribution to supply chain resiliency and infrastructure development. The joint venture's cost-plus-margin agreement for wafer production ensures a stable manufacturing model for Intel.

The collaboration between Intel and Apollo signifies a strategic move towards sustainable semiconductor production in a rapidly growing market.