Intel’s New Fab in Ireland Begins High-Volume Production of Intel 4 Technology
Intel Corporation and Apollo have reached an agreement to form a joint venture related to Intel’s Fab 34 in Ireland. Under this agreement, Apollo-managed funds and affiliates will invest $11 billion to acquire a 49% equity interest in the joint venture entity.
The joint venture will have rights to manufacture wafers at Fab 34 to support long-term demand for Intel’s products and provide capacity for Intel Foundry customers. Intel will retain a 51% controlling interest and full ownership and operational control of Fab 34 and its assets.
This move is part of Intel’s Semiconductor Co-Investment Program (SCIP), which is an element of Intel’s Smart Capital strategy. SCIP aims to create financial flexibility to accelerate Intel’s strategy, including investing in its global manufacturing operations, while maintaining a strong balance sheet.
Fab 34 is Intel’s leading-edge high-volume manufacturing (HVM) facility located in Leixlip, Ireland, designed for wafers using the Intel 4 and Intel 3 process technologies. Intel has invested a total of $18.4 billion in Fab 34 to date.
This transaction is expected to enhance Intel’s balance sheet with capital at a cost below Intel’s cost of equity and is anticipated to be treated as equity-like from a ratings perspective. The agreement with Apollo is seen as a strategic move to give Intel additional flexibility to execute its strategy as it invests to create a resilient and sustainable semiconductor supply chain.
Fab 34 in Ireland
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| Production tools fill the cleanroom of Fab 34, the newest Intel manufacturing facility in Ireland. On Sept. 29, 2023, Intel announced that the factory in Leixlip, Ireland, was in high-volume production of computer chips using Intel 4 technology. (Credit: Intel Corporation) |
Fab 34 plays a critical role in sustaining and augmenting the semiconductor supply chain across Europe, which is essential for the region’s technological independence and economic security.
Fab 34 is a significant development in the semiconductor industry for several reasons. It houses some of the most complex manufacturing technology in the world, which is crucial for advancing global semiconductor manufacturing.
Intel 4 Technology
Intel 4 Technology represents a significant leap forward in semiconductor manufacturing, marking a new era for Intel’s process nodes.
Intel 4 is the first Intel process to incorporate Extreme Ultraviolet (EUV) lithography, which allows for the creation of smaller and more complex chip designs. The new process node offers a 20% performance improvement over previous generations, which is a substantial increase in computing power.
The technology includes new core architectures like Redwood Cove (P-core) and Crestmont (E- core), which are expected to bring generational IPC (Instructions Per Cycle) gains and improved power efficiency.
Intel 4 Technology is a cornerstone of Intel’s roadmap, enabling the company to push the boundaries of what’s possible in computing.
