Intel Reportedly In Talks With Apollo For $11 Bln Fund To Build Ireland Plant

(RTTNews) - Chip giant Intel Corp. (INTC) is in advanced talks for a deal with Apollo Global Management for more than $11 billion in funding to help build a plant in Ireland, the Wall Street Journal reported citing people familiar with the matter.

Apollo's High Grade Capital Solution business, which provides financing to large investment-grade companies, is going ahead with the talks. A deal between both companies are expected to come together in the coming weeks, the report noted.

Intel is building or expanding factories in Arizona, Ohio, Ireland and several other locations with a view to boost its business amid surging demand for chips.

Other alternative-investment firms, including KKR and infrastructure investor Stonepeak, were also said to be in talks with Intel for the expected funding.

Intel previously had agreed to a similar $30 billion deal with Brookfield Asset Management.

The Biden Administration in March had announced that Intel and the U.S. Department of Commerce have signed a non-binding preliminary memorandum of terms for up to $8.5 billion in direct funding to Intel for commercial semiconductor projects under the CHIPS and Science Act.

The proposed funding would help advance Intel's critical semiconductor manufacturing and research and development projects at its sites in Arizona, New Mexico, Ohio and Oregon.

Under the PMT, Intel would also have the option to draw upon federal loans of up to $11 billion. Intel also plans to claim the U.S. Treasury Department's Investment Tax Credit (ITC), which is expected to be up to 25% of qualified investments of more than $100 billion over five years.