Intel and Canada’s Brookfield Asset Management on Tuesday agreed to jointly fund up to $30bn for the US chipmaker’s leading-edge chip factories in Arizona.
The move comes after US President Joe Biden earlier in August signed the Chips and Science Act into law, which included provision of $52.7bn in subsidies for US semiconductor production and research.
Brookfield’s infrastructure affiliate will invest up to $15bn for a 49% stake in the expansion project, while Intel will retain majority ownership and operating control of the two chip factories meant to make advanced chips in Chandler, Arizona.
Intel finance chief David Zinsner said the arrangement between the companies “builds on the momentum from the recent passage of the Chips Act in the US”.
The investment is part of a deal between Intel and Brookfield in February to explore project finance options to help fund new Intel manufacturing sites.
In July, Intel slashed its annual forecasts due to falling PC demand.
After Pat Gelsinger took over the reins of the company in early 2021, Intel had announced multibillion-dollar investments across Europe and in the US. They were aimed at increasing Intel’s chip production after the industry went through an over two-year-long supply crunch that derailed production of cars to computers.
Reuters
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