SANTA CLARA (dpa-AFX) - Chip giant Intel Corp. (INTC) is in advanced talks
for a deal with Apollo Global Management for more than $11 billion in funding to
help build a plant in Ireland, the Wall Street Journal reported citing people
familiar with the matter.

Apollo's High Grade Capital Solution business, which provides financing to large
investment-grade companies, is going ahead with the talks. A deal between both
companies are expected to come together in the coming weeks, the report noted.

Intel is building or expanding factories in Arizona, Ohio, Ireland and several
other locations with a view to boost its business amid surging demand for chips.

Other alternative-investment firms, including KKR and infrastructure investor
Stonepeak, were also said to be in talks with Intel for the expected funding.

Intel previously had agreed to a similar $30 billion deal with Brookfield Asset
Management.

The Biden Administration in March had announced that Intel and the U.S.
Department of Commerce have signed a non-binding preliminary memorandum of terms
for up to $8.5 billion in direct funding to Intel for commercial semiconductor
projects under the CHIPS and Science Act.

The proposed funding would help advance Intel's critical semiconductor
manufacturing and research and development projects at its sites in Arizona, New
Mexico, Ohio and Oregon.

Under the PMT, Intel would also have the option to draw upon federal loans of up
to $11 billion. Intel also plans to claim the U.S. Treasury Department's
Investment Tax Credit (ITC), which is expected to be up to 25% of qualified
investments of more than $100 billion over five years.



Copyright(c) 2024 RTTNews.com. All Rights Reserved

Copyright RTT News/dpa-AFX