Intel Corporation (INTC.US) reverses its "cost reduction and streamlining" strategy: after two years, it will spend $14.2 billion to repurchase shares of its Irish factory.

Intel Corporation (INTC.US) has agreed to pay $14.2 billion to repurchase half of the shares of a factory in Ireland that it previously sold to Apollo Global Management Inc (APO.US). Intel Corporation stated on Wednesday that the transaction will be financed with existing cash and the issuance of about $6.5 billion in new debt. Previously, Apollo invested $11.2 billion to acquire 49% of a joint venture which owned the ownership of the Fab 34 factory in 2024. Intel Corporation indicated that this transaction provided the necessary funds for introducing new production technologies in their factories in the US and other locations. This latest move by Intel Corporation marks a strategic shift as the company had been in cost-cutting mode for most of 2025. CEO Liang Wu Chen took office in March of that year and implemented significant layoffs, slowed expansion projects, and sought to sell off businesses. However, Intel Corporation received a significant injection of funds through a new agreement with the US federal government this agreement, facilitated by the White House, made the US one of the company's biggest supporters. NVIDIA Corporation (NVDA.US) and SoftBank Group also made investments of several billion dollars last year. The repurchase in Ireland also reflects Intel Corporation's growing confidence in its business and belief in their products playing a bigger role in the surge of AI infrastructure spending. According to CFO Dave Zinsner, Intel Corporation's situation was drastically different two years ago. At the time, to raise funds to improve their financial situation, Intel Corporation sold off partial shares to investment firms as part of a series of necessary transactions. Over the years, Intel Corporation's sales and market share had been declining continuously, and their business condition had been concerning, leading some to question whether they could continue operating as an independent company. "The agreement we reached in 2024 was the right architecture at the time, providing Intel Corporation with important flexibility to accelerate key projects," Zinsner stated in a release. "Now, we have a strong balance sheet, stricter financial discipline, and a more comprehensive business strategy." Intel Corporation stated in January that by the end of 2025, they had $37.4 billion in cash and short-term investments. The company repaid $3.7 billion in debt in the fourth quarter of last year and committed to repay other debts due in 2026 and 2027. Fab 34 is the company's primary production base in Europe, located in Leixlip on the outskirts of Dublin. The factory produces personal computer and server processors. Currently, the company is utilizing manufacturing technologies known as Intel 4 and Intel 3, which are being replaced by a more advanced technology called 18A, first introduced at the company's US factories.