Intel Sells a Stake in IMS to Fund Construction of New Plants

Intel Corporation (INTC:US) said on Wednesday it has agreed to sell a 20% stake in its IMS Nanofabrication GmbH business to private equity firm Bain Capital.

The deal, which is expected to close in the third quarter of this year, values the Austria-based business owned by Intel at $4.3 billion. IMS will continue to operate as an independent company and will be led by the incumbent CEO Elmar Platzgummer.

“Bain Capital’s investment and partnership will provide IMS with increased independence and bring a strategic perspective to help accelerate the next phase of lithography technology innovation, ultimately benefiting the ecosystem as a whole,” Matt Poirier, senior vice president of Corporate Development at Intel, said.

Intel CEO Pat Gelsinger has been finding ways to generate cash as it committed to spend tens of billions of dollars to expand its production footprint. Most recently, Intel received nearly €10 billion in government subsidies to build two chip plants worth more than €30 billion in Germany.

“We’re grateful to the German federal government, Chancellor Olaf Scholz and the government of Saxony-Anhalt for their partnership and shared commitment to fulfilling the vision of a vibrant, sustainable, leading-edge semiconductor industry in Germany and the EU,” said Intel’s CEO Pat Gelsinger.

It has also been announced earlier this month that Intel will sell a $1.5 billion worth of stake in Mobileye.

A few days ago, Senator John Hickenlooper disclosed that he sold $100,000 - $250,000 worth of Intel shares in early May on the day when stock closed at $29.97. Shares moved further in the meantime, having closed at $35.00 on Tuesday.