Ever evolving, the global semiconductor market is on track to reach $1 trillion by 2030, nearly double its current size(1).
For businesses at the forefront of the industry, the immense and continued demand for silicon equates to a massive need for capital. Leading-edge manufacturing capacity requires years to build and tens of billions of dollars to fund. Standing still is not an option, and meaningful progress demands bold investment.
In 2024, Intel, an industry pioneer, was advancing efforts to build a robust advanced semiconductor supply chain. Determined to scale its leading-edge capacity across the US and Europe, the company was building out Fab 34, a high-volume manufacturing facility in Ireland designed for Intel 4 and Intel 3 process technologies, as a central part of that plan. Intel had committed $18.4 billion to the facility.
The challenge wasn't conviction in the investment. It was financial flexibility, specifically, the ability to unlock and redeploy capital to other strategic priorities while continuing the build-out of Fab 34. Issuing additional debt would have increased leverage and risked a ratings downgrade and Intel’s cost of equity was significantly higher at the time. In June of that same year, Apollo funds and affiliates stepped in to lead an $11.2 billion investment to acquire a 49% interest in a Fab 34 joint venture entity, bringing a scaled solution priced below Intel’s cost of equity that supported the company’s needs at a pivotal moment.
"Intel's agreement with Apollo gives us additional flexibility to execute our strategy as we invest to create the world's most resilient and sustainable semiconductor supply chain. This transaction allows us to share our investment with an established financial partner on attractive terms while maintaining our strong investment-grade credit rating."
David Zinsner, CFO, Intel(2)
Apollo’s partnership with Intel began at an important stage in the execution of its advanced manufacturing roadmap, where long-term strategic capital played a meaningful role in accelerating the production of next-generation chip technology.
As significant new capital flowed into the semiconductor ecosystem, Intel’s financial position and strategic priorities evolved. In April 2026, Intel announced the repurchase of Apollo's 49% equity interest in the joint venture for $14.2 billion.
The transaction reflected Intel's significantly stronger balance sheet, improved financial discipline and evolved business strategy. This outcome highlights the value of solutions-oriented capital that adapts as companies’ needs change.
“Flexibility and alignment are core to how we approach relationships as a long-term, solutions-oriented capital partner, and we are pleased to facilitate this mutually beneficial transaction in support of Intel’s evolving strategic and operational priorities.”
Jamshid Ehsani, Partner, Apollo
From initial investment through to the buyback, the transaction demonstrated how Apollo’s flexible capital can serve companies today and as they evolve:
As part of the broader Global Industrial Renaissance, the rapid evolution of AI is driving unprecedented demand for digital infrastructure, from fabs and data centers to next-gen power generation. We estimate the capital demands of key industries from utilities and digital infrastructure to the energy transition are over $75 trillion.
As the digital ecosystem expands, private capital is supporting the development of critical technologies and infrastructure shaping the next wave of innovation across the global economy.
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