Brookfield signs $30bn chip partnership with Intel
Brookfield Infrastructure Partners has signed a US$30 billion partnership agreement with Intel to fund its under-construction semi-conductor fabrication facility in Chandler, Arizona.
The deal follows the approval of landmark semiconductor legislation in the US that would see billions of dollars poured into the country’s semiconductor industry.
Brookfield will invest up to US$15 billion for a 49% stake in the manufacturing expansion at its Ocotillo campus in Chandler, Arizona, with Intel holding a 51% majority stake.
The investment will aid the development of infrastructure assets such as transmission lines, data centres and wireless cell towers.
“This landmark arrangement is an important step forward for Intel’s Smart Capital approach and builds on the momentum from the recent passage of the CHIPS Act in the US,” said David Zinsner, Intel CFO.
“Semiconductor manufacturing is among the most capital-intensive industries in the world, and Intel’s bold IDM 2.0 strategy demands a unique funding approach.
“Our agreement with Brookfield is a first for our industry, and we expect it will allow us to increase flexibility while maintaining capacity on our balance sheet to create a more distributed and resilient supply chain.”
Intel currently has two plants under construction at its site in Chandler, Arizona which are both expected to finish development in 2024.
The company announced plans to invest US$20 billion in two chip factories at a new site in Cleveland, Ohio and will pour a further US$30 billion into chip manufacturing in Europe.