According to reports, Intel (INTC.US) is in in-depth negotiations with Apollo Global Management (APO.US) on a deal that will provide more than 11 billion US dollars to help Intel establish a chip factory in Ireland.
The Zhitong Finance App learned that according to reports, Intel (INTC.US) is in in-depth negotiations with Apollo Global Management (APO.US) on a deal. The latter will provide more than 11 billion US dollars to help Intel establish a chip factory in Ireland.
The report quoted people familiar with the matter as saying that Intel and Apollo are in exclusive negotiations on this deal, which may be signed in the next few weeks.
Other investment firms, including KKR (KKR.US) and Stonepeak, are also competing for the deal, but Apollo is in the lead.
Additionally, Intel plans to invest 100 billion US dollars in four US states to boost its manufacturing business and catch up with chip-making competitor TSM.US.
Intel's second-quarter revenue and profit guidance announced last month fell short of market expectations. At a time when the market for artificial intelligence components is soaring, the company's traditional data center and personal computing chips are facing weak demand.
The company announced plans to build chip factories in Ireland and France in 2022 as it sought to benefit from the European Commission's looser financing rules and subsidies.
As of press release, Intel was up 1.27% to $30.23 in the premarket.