Intel to Repurchase 49% Equity Interest in Ireland Fab Joint Venture

[Artificer60]

I have a pretty good model for 18A wafer cost today and what it will be when fully loaded in Fab 52.

Curious, does your model show 18A is cost competitive when F52 is fully ramped? And what is your yield assumption when 18A is mature?

I'm assuming this is not based on a final product since that involves chips from multiple processes/vendors.

 

[hist78]

Well you are only thinking it from one point of view it is possible don't forget there is profit sharing as well for the fab Intel already paid a decent amount of fine for Ireland already if they failed to meet another milestone they had to pay the fine on top of sharing the profit and Intel might have factored that in when making the purchase.

Isn’t what you described just one of the reasons that Intel is being forced to buy back the 49% stake in the joint venture at such a high price and poor timing when Intel needs more cash? Especially since it effectively wipes out almost all of the cash investments made by the U.S. government, Nvidia, and SoftBank.

This $14.2 billion cash outflow exceeds the total net profit Intel has earned over the past five years. By comparison, Intel’s 2025 CapEx is $14.65 billion, only slightly higher than the $14.2 billion payout to Apollo.

This JV buyback will allow Intel to manage its Ireland fab with greater flexibility. But, the financial strain on Intel is enormous. Intel must be under significant pressure to execute such a large buyback, one that does not increase fab capacity at all.

"Are we really sure Intel initiated this “joint venture” buyback? Or was Intel forced to buy back Apollo’s 49% stake because the JV contract entitled Apollo to a highly profitable exit once certain clauses were met, or not met?"

Post in thread 'Intel to Repurchase 49% Equity Interest in Ireland Fab Joint Venture'

Yesterday at 1:21 PM

Financial engineers, appointed in 2009 at the end of the financial crisis, being saved by taxpayers; time to get out after 17 years "guiding" INTEL:
https://www.intc.com/news-events/pr...hair-frank-d-yeary-to-retire-following-annual

This is good as the terms of the agreement were very punishing if milestones were not met (they were not met).

Intel now does not have regulations over how to use it.

Using other peoples money to fund IFS growth was a core of Pats plan.... Since intel is not growing, It now is being fixed but it will...

• hist78