Eversheds Sutherland Advises Intel Corporation on $11B Joint Venture with Apollo for its Chip Manufacturing Plant in Ireland

Eversheds Sutherland is pleased to announce that it advised Intel Corporation (Nasdaq: INTC) on a definitive agreement under which funds managed by Apollo (NYSE: APO) and  affiliates will invest $11 billion to acquire from Intel a 49% equity interest in a joint venture entity related to Intel’s Fab 34.

The transaction represents Intel’s second Semiconductor Co-Investment Program (SCIP) arrangement. 

Located in Leixlip, Ireland, Fab 34 is Intel’s leading-edge high-volume manufacturing (HVM) facility designed for wafers using the Intel 4 and Intel 3 process technologies. To date, Intel has invested $18.4 billion in Fab 34. 

Under the agreement, the joint venture will have rights to manufacture wafers at Fab 34 to support long-term demand for Intel’s products and provide capacity for Intel Foundry customers. Intel will have a 51% controlling interest in the joint venture. Intel will retain full ownership and operational control of Fab 34 and its assets. The transaction is designed to enhance the company’s balance sheet with capital at a cost below Intel’s cost of equity. The investment in the joint venture is expected to be treated as equity-like from a ratings perspective.

Eversheds Sutherland Partners Robert S. Chase II (Tax), William S. Dudzinsky (Corporate) and Alan Connell (Tax) led the deal, with support from Partners Xenia J. Garofalo (Tax), Aaron C. Moody (Corporate), Lee Murphy (Corporate), Sean Ryan (Competition); Senior Associate Andre Vermeulen (Tax); and Associates Pamela Brennan (Tax), Svetlana Espinosa-Valdes (Tax), and Angelena Velaj (Corporate).  

About Intel

Intel (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore’s Law, we continuously work to advance the design and manufacturing of semiconductors to help address our customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash the potential of data to transform business and society for the better. To learn more about Intel’s innovations, go to newsroom.intel.com and intel.com.

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