Apollo Global Management (an alternative investment firm) is reportedly in talks to invest $5 billion in Intel Corp. Recently, Apollo has indicated its willingness to make a substantial equity stake in Intel, amounting to billions of dollars.
The potential investment could be part of a broader strategy to support Intel’s ambitious plans to ramp up its manufacturing capabilities. It also plans to help the five-decade-old company regain its footing in the highly competitive semiconductor industry.
Intel, once the undisputed leader in chip production, whose shares have lost nearly 60% of their value since the start of the year. The company has faced a lot of competition from companies like TSMC and Samsung. To step back in its game, the company previously announced its plans to expand its manufacturing units in the U.S. and Europe, as part of its “IDM 2.0” strategy.
Apollo’s investment could provide Intel with much-needed capital to fund these expansion efforts. Announced earlier this year that they will acquire a 49% equity interest in a joint venture related to Intel’s new manufacturing facility in Ireland for $11 billion.
If it goes through, the deal will be one of the largest private equity investments in any major U.S. tech company this year.
Neither Apollo nor Intel has confirmed or denied any elements of the reported negotiations. Other investors and industry experts have their eyes on the industry’s development since it is a critical component for global advancement in technology.
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