Apollo reported to be considering $5bn investment in Intel

Apollo Global Management has offered to make an investment in Intel of up to $5 billion, reports Bloomberg.

Apollo has already taken an $11 billion stake in Intel’s plant in  Leixlip, Ireland.

The Apollo news comes after a series of announcements which have recently boosted Intel’s share price which fell sharply after bad Q2 results.

There was the announcement of the US military’s $3.5 billion foundry contract, the announcement of AWS’ commitment to use Intel Foundry, the announcement of the spin-off of the foundry business and a report that Qualcomm was interested in buying Intel.

All of these helped to bring Intel’s share price back up above $20 which is a long way short of the $60 it was at when it started on its project to regain a world-class manufacturing process.

Intel ‘s share price has been hammered by its embarkation on a four year mission to restore leading edge manufacturing capability to the USA which is costing huge amounts of money in a weak chip market.

However next year could see mission accomplished with the establishment of a leading edge process – 18A – which would restore Intel’s fortunes and put it in line for $19.5 billion of Chips Act money plus 25% tax credits on its infrastructure investments.