Intel and Apollo to Form JV Related to Intel’s Fab 34 in Ireland, Apollo to Lead $11 Bn Investment in the JV

Intel’s New Fab in Ireland Begins High-Volume Production of Intel 4 Technology

Intel Corporation and Apollo have reached an agreement to form a joint venture related to Intel's Fab 34 in Ireland. Under this agreement, Apollo-managed funds and affiliates will invest $11 billion to acquire a 49% equity interest in the joint venture entity.

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 retain a 51% controlling interest and full ownership and operational control of Fab 34 and its assets.

This move is part of Intel's Semiconductor Co-Investment Program (SCIP), which is an element of Intel’s Smart Capital strategy. SCIP aims to create financial flexibility to accelerate Intel's strategy, including investing in its global manufacturing operations, while maintaining a strong balance sheet.

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

This transaction is expected to enhance Intel's balance sheet with capital at a cost below Intel’s cost of equity and is anticipated to be treated as equity-like from a ratings perspective. The agreement with Apollo is seen as a strategic move to give Intel additional flexibility to execute its strategy as it invests to create a resilient and sustainable semiconductor supply chain.

Fab 34 in Ireland

Production tools fill the cleanroom of Fab 34, the newest Intel manufacturing facility in Ireland. On Sept.  29, 2023, Intel announced that the factory in Leixlip, Ireland, was in high-volume production of computer chips using Intel 4 technology. (Credit: Intel Corporation)

Fab 34 plays a critical role in sustaining and augmenting the semiconductor supply chain across Europe, which is essential for the region's technological independence and economic security.

Fab 34 is a significant development in the semiconductor industry for several reasons. It houses some of the most complex manufacturing technology in the world, which is crucial for advancing global semiconductor manufacturing.

The creation of Fab 34 represents a €17 billion investment by Intel and, once fully operational, it will employ 1,600 new full- time staff, bringing Intel's total employment in Ireland to 6,500. This underscores the facility's role in boosting the local economy and job market.

Intel 4 Technology

Intel 4 Technology represents a significant leap forward in semiconductor manufacturing, marking a new era for Intel's process nodes.

Intel 4 is the first Intel process to incorporate Extreme Ultraviolet (EUV) lithography, which allows for the creation of smaller and more complex chip designs. The new process node offers a 20% performance improvement over previous generations, which is a substantial increase in computing power.

The technology includes new core architectures like Redwood Cove (P-core) and Crestmont (E- core), which are expected to bring generational IPC (Instructions Per Cycle) gains and improved power efficiency.

Intel 4 Technology is a cornerstone of Intel's roadmap, enabling the company to push the boundaries of what's possible in computing.

Apollo Funds Complete Acquisition of Yahoo

Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”) today announced that funds managed by its affiliates (the “Apollo Funds”) have completed the acquisition of Yahoo - formerly Verizon Media - one of the world’s premier global technology and media companies. With the close of the transaction, Yahoo will now operate as a standalone company under Apollo Funds. Verizon has retained a 10% stake in Yahoo. In July 2016, Verizon bought Yahoo in a $4.83 billion acquisition deal.

“We look forward to partnering with Yahoo's talented employee base to build on the company's strong momentum and position the new Yahoo for long-term success as a standalone consumer internet and digital media leader,” said Reed Rayman, Partner at Apollo. “We couldn’t be more excited about this next chapter for Yahoo as we look to invest in growth across the business, including accelerating its customer-first offerings and commerce capabilities, expanding its reach and enhancing the daily user experience.”

“This is a new era for Yahoo,” said Guru Gowrappan, CEO, Yahoo. “The close of the deal heralds an exciting time of renewed opportunity for us as a standalone entity. We anticipate that the coming months and years will bring fresh growth and innovation for Yahoo as a business and a brand, and we look forward to creating that future with our new partners."

For nearly 30 years, Yahoo has been the world’s premier global technology and media company, with nearly 900 million monthly active users worldwide, making it the third-largest property on the internet. Comprised of iconic consumer news brands and products, plus leading advertising and media platform businesses, Apollo’s investment will enable new growth for Yahoo, benefiting consumers, advertisers, publishing partners, and employees.

About Apollo

Apollo is a high-growth, global alternative asset manager. We seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid and opportunistic. Through our investment activity across our fully integrated platform, we serve the retirement income and financial return needs of our clients, and we offer innovative capital solutions to businesses. Our patient, creative, knowledgeable approach to investing aligns our clients, businesses we invest in, our employees and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2021, Apollo had approximately $472 billion in assets under management. To learn more, please visit www.apollo.com

About Yahoo

Yahoo is a global media and tech company that connects people to their passions. We reach nearly 900 million people around the world, bringing them closer to what they love—from finance and sports, to shopping, gaming and news—with the trusted products, content and tech that fuel their day. For partners, we provide a full-stack platform for businesses to amplify growth and drive more meaningful connections across advertising, search and media. To learn more, please visit yahooinc.com