Intel said Intel Ireland, its wholly owned subsidiary, agreed on June 4, 2024 to sell a 49% stake in the joint venture for Fab 34 to AP Grange Holdings, LLC, an Apollo-related entity, for about $11 billion. Intel Ireland will keep the remaining 51%.

1. 01

   Intel said Intel Ireland, its wholly owned subsidiary, agreed on June 4, 2024 to sell a 49% stake in the joint venture for Fab 34 to AP Grange Holdings, LLC, an Apollo-related entity, for about $11 billion. Intel Ireland will keep the remaining 51%.

2. 02

   In its press release, Intel said it has invested $18.4 billion in Fab 34 to date. The company said the transaction lets it unlock and redeploy part of that investment to other parts of its business while continuing the build-out of Fab 34.

3. 03

   Intel said it will buy wafers from the joint venture at manufacturing cost plus an agreed margin and has minimum volume commitments, and that it may have to pay liquidated damages if it fails to meet them. The company said these liquidated damages and other termination payments are amounts that would allow the joint venture to distribute up to 140% of the Purchase Price in respect of the Co-Investor's units.

4. 04

   Intel said it expects the transaction to close in Q2 2024, and that either Intel Ireland or Co-Investor may terminate the agreement if the closing has not occurred by August 31, 2024. The company gave June 2026 as the target date for substantial completion of Fab 34.

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