Intel needs $2 billion to expand Ireland Fab 34 fab

Previous reports have indicated that Intel is seeking to raise $2 billion in equity financing for the expansion of its Fab 34 wafer plant in Ireland. To facilitate this endeavor, Intel has engaged a consultant to identify potential investors interested in funding the project.

According to media sources, Apollo Global Management, KKR & Co., and Stonepeak are contemplating the formation of a joint venture to finance Intel’s semiconductor operations in Ireland. Should an agreement be reached, these asset management firms will establish a joint venture to invest in Intel’s Fab 34 wafer facility in Ireland and acquire shares in the plant.

Fab 34 this month reached an important milestone in the Intel 4 journey when it began running its First Full Loop silicon.

Intel’s Fab 34 in Leixlip, located approximately 10 miles west of Dublin city center, represents Europe’s most advanced semiconductor manufacturing facility and is the only semiconductor base in Europe to employ an EUV lithography machine for mass production. The facility marked a significant milestone in April 2022 with the installation of its first EUV lithography machine. In September of the same year, Fab 34 completed the setup and calibration of the EUV lithography machine, achieving mass production using the Intel 4 process and manufacturing products including Meteor Lake. It is anticipated that the facility will also begin producing new Xeon server processors for data centers.

While $2 billion alone is insufficient to construct a new wafer factory, it is significantly meaningful for supporting expansions or upgrading capacity. Rumors suggest that Intel’s primary goal is to increase the production capacity of Fab 34 and then transition to the more advanced Intel 3 process, possibly even including future Intel 18/20A processes. Beyond meeting its own chip production needs, Intel aims to fulfill the requirements of its foundry division and secure additional semiconductor manufacturing contracts.