Report: Intel Seeks $2 Billion in Funding for Ireland Fab 34 Expansion

[AleksandarK]

According to a Bloomberg report, Intel is seeking to raise at least $2 billion in equity funding from investors for expanding its fabrication facility in Leixlip, Ireland, known as Fab 34. The chipmaker has hired an advisor to find potential investors interested in providing capital for the project. Fab 34 is currently Intel's only chip plant in Europe that uses cutting-edge extreme ultraviolet (EUV) lithography. It produces processors on the Intel 4 process node, including compute tiles for Meteor Lake client CPUs and expected future Xeon data center chips. While $2 billion alone cannot finance the construction of an entirely new fab today, it can support meaningful expansion or upgrades of existing capacity. Intel likely aims to grow Fab 34's output and/or transition it to more advanced 3 nm-class technologies like Intel 3, Intel 20A, or Intel 18A.

Expanding production aligns with Intel's needs for its own products and its Intel Foundry Services business, providing contract manufacturing. Intel previously secured a $15 billion investment from Brookfield Infrastructure for its Arizona fabs in exchange for a 49% stake, demonstrating the company's willingness to partner to raise capital for manufacturing projects. The Brookfield deal also set a precedent of using outside financing to supplement Intel's own spending budget. It provided $15 billion in effectively free cash flow Intel can redirect to other priorities like new fabs without increasing debt. Intel's latest fundraising efforts for the Ireland site follow a similar equity investment model that leverages outside capital to support its manufacturing expansion plans. Acquiring High-NA EUV machinery for manufacturing is costly, as these machines can reach up to $380 million alone.



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[R0H1T]

Again? When do they stop asking for handouts

 

[wNotyarD]

Again? When do they stop asking for handouts

Never

 

[stimpy88]

Such corruption that this sort of thing goes on. The taxpayer funds Intel's, and most other corporations' business, plus they don't pay any significant amounts of tax, so beyond the initial investment, nothing is ever paid back, and always costs the tax payer.

 

[bug]

Such corruption that this sort of thing goes on. The taxpayer funds Intel's, and most other corporations' business, plus they don't pay any significant amounts of tax, so beyond the initial investment, nothing is ever paid back, and always costs the tax payer.

While it's true Intel has manage to get preferential conditions for themselves, the assertion that "most other corporations' business ... don't pay any significant amounts of tax" is blatantly false: https://www.irishtimes.com/business...10-corporate-taxpayers-who-are-they-1.4766017

 

[AnarchoPrimitiv]

While it's true Intel has manage to get preferential conditions for themselves, the assertion that "most other corporations' business ... don't pay any significant amounts of tax" is blatantly false: https://www.irishtimes.com/business...10-corporate-taxpayers-who-are-they-1.4766017

Compared to working class individuals, they do basically pay no taxes, and on average I could take any working class person, and I'd be willing to bet they pay an effective higher tax rate than any corporate entity (especially in corporate tax havens like Ireland or the United States). Yes, they may seem like these corporations are paying large sums in taxes, but when you look at the effective tax rate for Intel in America, it was 8.46% and for an individual earning $50K USD/year they're effective tax rate can be anywhere from 13% to 22%. However, if you include subsidies (government handouts) to Intel, this 8.46% figure can actually sink much lower, and at least for other large corporations, they're NET tax expenditures can be in the 2%-3% range.



When you consider all the billions in subsidies on top of the externalities that these corporations create that are burdened by the public at large (i.e. corporate money and political corruption in both legal [campaign contributions] and illegal ways, pollution, manipulation of the labor market, etc) they basically have been a NET burden on society and end up costing more than they ever help (and no, I don't see the creation of a 14900k as a "fair trade" for all the billions in taxpayer money Intel.has taken, the questionable ethical stances they have taken with respect to their actions in certain countries around the world, the manipulation of consumer markets by bribing OEMs, etc)

 

[docnorth]

I don't believe we are even discussing about 2 measly billions .

 

[remixedcat]

why can't they take stuff one thing at a time... I feel like they rushing for too much at the same time... it's not good... They are spread too wafer thin rn (pun intended)

Ohio fab isn't even done yet and they going after this?

 

[wNotyarD]

why can't they take stuff one thing at a time... I feel like they rushing for too much at the same time... it's not good... They are spread too wafer thin rn (pun intended)

Ohio fab isn't even done yet and they going after this?

Intel is fundraising (read it: asking handouts) everywhere, it's surprising they didn't launch a kickstart campaign for their factories around the globe.

 

[bug]

Compared to working class individuals, they do basically pay no taxes, and on average I could take any working class person, and I'd be willing to bet they pay an effective higher tax rate than any corporate entity (especially in corporate tax havens like Ireland or the United States). Yes, they may seem like these corporations are paying large sums in taxes, but when you look at the effective tax rate for Intel in America, it was 8.46% and for an individual earning $50K USD/year they're effective tax rate can be anywhere from 13% to 22%. However, if you include subsidies (government handouts) to Intel, this 8.46% figure can actually sink much lower, and at least for other large corporations, they're NET tax expenditures can be in the 2%-3% range.



When you consider all the billions in subsidies on top of the externalities that these corporations create that are burdened by the public at large (i.e. corporate money and political corruption in both legal [campaign contributions] and illegal ways, pollution, manipulation of the labor market, etc) they basically have been a NET burden on society and end up costing more than they ever help (and no, I don't see the creation of a 14900k as a "fair trade" for all the billions in taxpayer money Intel.has taken, the questionable ethical stances they have taken with respect to their actions in certain countries around the world, the manipulation of consumer markets by bribing OEMs, etc)

If I'm showing you 1 in 5€ comes from just the top corporations and you reply with "compared to working class individuals, they do basically pay no taxes", then we should stop here.

 

[theouto]

"Just one more fab bro, I swear we'll solve computers just one more fab, trust me one more fab bro, come on." - Pat Gelsinger

 

[Denver]

Why beg now, Pat? They shouldn't even be fully using their current capacity...

 

[bug]

Why beg now, Pat? They shouldn't even be fully using their current capacity...

These things are always planned 5-10 years in advance. That's why you get supply issues so easily: when demand surges, there is literally no idle fab that can handle it, so it all turns into a bidding war.

 

[R0H1T]

"Just one more fab bro, I swear we'll solve computers just one more fab, trust me one more fab bro, come on." - Pat Gelsinger

Governments world over right now!

Spoiler

 

[EatingDirt]

"We need $2 Billion." says the company that had a net income average of over $20 Billion from 2018-2021... 2023 was the first year in 10 years that Intel had under a net income of under $4 Billion.

Really is tiring to see these mega-corps asking, and often getting handouts that they clearly don't need.

 

[mechtech]

don't they make 6 billion a quarter net?

 

[Random_User]

Again? When do they stop asking for handouts

Never. As they will never cease to receive them, by "generous" gov's hads from its "own" money.

Such corruption that this sort of thing goes on. The taxpayer funds Intel's, and most other corporations' business, plus they don't pay any significant amounts of tax, so beyond the initial investment, nothing is ever paid back, and always costs the tax payer.

The saddest part is about to taxpayers, who happen to be intel consumers, which then receive nought benefit either from buying product at higher prices, nor for funding the "blue" "sandbagging" company, whose products can't even challenge properly. Imagine if that taxpayer is also an intel's fan.

Intel is fundraising (read it: asking handouts) everywhere, it's surprising they didn't launch a kickstart campaign for their factories around the globe.

That's already happened. E and world already donated crap ton of money for intel's fabs. The problem is, that intel hasn't been fined for wasting money on overseas factories. How that even possible?

don't they make 6 billion a quarter net?

Doesn't matter, as this shouldn't even had took this far. All their "funding" should be at their own expence. Period. There are better US companies, that I'm sure had no luck to take a penny from chip act.

 

[ThrashZone]

Hi,
Good size tin cup
There's a saying
If you don't ask you'll never get it