Intel’s Fab 34 Expansion: $2 Billion Investment Sought

Intel’s Fab 34 wafer fabrication facility, located approximately 10 miles west of Dublin’s city center in Leixlip, Ireland, marked a significant milestone in April 2022 with the installation of its first Extreme Ultraviolet (EUV) lithography machine. This event not only established the first wafer fabrication facility in Europe equipped with EUV technology but also represented the inaugural installation of an EUV lithography machine by Intel. In September of the previous year, Fab 34 completed the installation and calibration of the EUV lithography machine, achieving mass production capabilities for the Intel 4 process technology, including the fabrication of products such as Meteor Lake.

According to media reports, Intel is actively seeking to raise $2 billion in equity financing for the expansion of the Fab 34 facility. The company has engaged a consultant to identify potential investors interested in funding this endeavor. While $2 billion alone would not suffice to construct a brand-new wafer fabrication facility, it signifies a substantial commitment toward enhancing or upgrading the existing production capacity.

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

Insights suggest Intel aims to initially boost the production capacity of the Fab 34 facility before transitioning to the more advanced Intel 3 process technology, and eventually to the future Intel 18/20A process technologies. This strategy aligns with Intel’s product roadmap and foundry services requirements.

Previously, Intel secured a $15 billion investment from Brookfield Infrastructure Partners for its Arizona, USA, wafer fabrication plant, in exchange for a 49% equity stake. This innovative financing approach set a precedent for supplementing Intel’s expenditure budget with external capital. It also indicates Intel’s openness to collaborating with partners to raise funds for manufacturing projects, thereby reallocating its resources to other priorities without increasing debt. For the new projects at the Fab 34 facility, Intel appears keen on continuing this model of exchanging equity for investment.