Intel (NASDAQ:INTC) is nearing a major deal with Apollo Global Management, which is set to invest over $11 billion to support the construction of a new chip plant in Ireland, the Wall Street Journal reported Monday.
The chipmaker’s shares climbed 1.3% in premarket trading Monday.
The two parties are currently engaged in exclusive negotiations, with a potential agreement expected in the coming weeks, provided there are no unforeseen obstacles.
Previously, other investment firms such as KKR and Stonepeak were considered for the partnership, but Apollo has recently taken the lead. Apollo is handling this investment through its High Grade Capital Solution division, which typically funds large, investment-grade corporations.
Under the leadership of CEO Pat Gelsinger, Intel is actively expanding its manufacturing capabilities, not just in Ireland but also in Arizona and Ohio, among other places.
These expansion-focused efforts are part of Intel's strategy to meet the increasing demand for semiconductors and to bolster its contract chip-making division, launched three years ago to compete with industry giants like Taiwan Semiconductor Manufacturing (TSM) and Samsung Electronics.