INTC · 10-Q · 2026Q2 · Full report

Ireland SCIP Ownership Repurchase

INTEL CORP · 2026-07-24 · Importance 71 · Surprise 60 · Matches filing data

On April 8, 2026, Intel reacquired Apollo’s minority ownership interest in Ireland SCIP, which operates the Ireland-based Fab 34 wafer fabrication plant, for aggregate cash consideration of $14.2 billion, including transaction costs. Intel now owns 100% of Ireland SCIP, and the related operating and ancillary agreements with Apollo were substantially terminated. The transaction eliminated the Ireland SCIP non-controlling interest and extinguished the derivative liability associated with Fab 34 construction-delay liquidated damages, while $13.5 billion of residual consideration reduced Intel’s capital in excess of par value. Separately, Arizona SCIP had $6.0 billion of construction-in-progress assets and $13.8 billion of in-service property, plant, and equipment at June 27, 2026, with Intel required to operate the facility at minimum production levels and limit excess inventory under its production contract.

Key facts

• We funded the repurchase of Apollo's non-controlling equity interest through a combination of existing cash and cash equivalents, short-term investments and a $6.5 billion term loan facility that we entered into in Q2 2026 and subsequently repaid in Q2 2026 using proceeds from the issuance of $6.5 billion aggregate principal amount of senior fixed-rate notes. source
• In Q2 2026 we acquired from Apollo its 49% minority ownership interest in our majority-owned and consolidated Ireland SCIP VIE for aggregate cash consideration of $14.2 billion, inclusive of transaction costs. source
• INTEL CORP acquired all outstanding minority holder ownership interests in Ireland SCIP VIE for aggregate cash consideration of $14.2 billion, inclusive of transaction costs. source
• INTEL CORP recognized residual consideration of $13.5 billion as a reduction to capital in excess of par value for the Ireland SCIP transaction. source
• On April 1, 2026, we executed and drew on a $6.5 billion 364-day senior unsecured term loan facility with an interest rate of 4.79%, and on April 30, 2026 we repaid the term loan facility in full. source
• INTEL CORP extinguished a $532 million derivative liability associated with delay-related liquidated damages provisions related to Ireland SCIP. source
• INTEL CORP's Consolidated Condensed Financial Statements for Q2 2026 reflect 100% ownership of Ireland SCIP and elimination of $142 million of non-controlling interest in Ireland SCIP. source
• The equity transaction to acquire the minority interests in Ireland SCIP closed on April 8, 2026. source

Impact estimates