Intel (NASDAQ:) is closing in on a major deal with Apollo Global Management, which will invest more than $11 billion to support the construction of a new chip plant in Ireland, the Wall Street Journal reported Monday.
Shares of the chipmaker rose 1.3% in premarket trading Monday.
Both parties are currently in exclusive negotiations, with a potential agreement expected in the coming weeks, barring unforeseen obstacles.
Previously, other investment firms such as KKR and Stonepeak were considered for partnership, but Apollo recently took the lead. Apollo manages these investments through its High Grade Capital Solution division, which typically finances large investment-grade corporations.
Under the leadership of CEO Pat Gelsinger, Intel is aggressively expanding its manufacturing capabilities not only in Ireland, but also in Arizona, Ohio and other places.
The expansion efforts are part of Intel’s strategy to meet growing demand for semiconductors and strengthen its contract chip manufacturing division, created three years ago to compete with industry giants Taiwan Semiconductor Manufacturing (TSM) and Samsung Electronics.