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Intel nears $11 billion deal with Apollo for factory in Ireland, reports WSJ
(Reuters) -Intel is in advanced talks for a deal with Apollo Global Management in which the equity firm would provide more than $11 billion to build a facility in Ireland, the Wall Street Journal reported on Monday.
The move comes as Intel seeks to expand its presence in the United States with a planned $100 billion spending spree across four states to boost its manufacturing business and catch up with rival chipmaker TSMC.
Intel and Apollo are in exclusive negotiations for the deal, which could be signed in the coming weeks, the report said, citing people familiar with the matter.
Other investment firms, including KKR and infrastructure investor Stonepeak, were also in contention before Apollo recently moved forward, the report added.
Apollo Global Management and Intel declined to comment when contacted by Reuters.
Intel forecast second-quarter revenue and profits below market estimates last month as it faces weak demand for its traditional data centers and personal computing chips amid a growing market for AI components.
The company announced plans in 2022 to build chip factories in Ireland and France as it seeks to benefit from easier funding rules and subsidies from the European Commission.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Devika Syamnath and Pooja Desai)