Intel and Canada´s Brookfield Asset Management agreed to jointly fund up to $30 billion for the U.S. chipmaker’s leading-edge chip factories in Chandler, Arizona, both companies announced.
Brookfield’s infrastructure affiliate will invest up to $15 billion for a 49% stake in the expansion project at the Arizona facility, while Intel will retain majority ownership and operating control of the two chip factories, which will support long-term demand for Intel’s products and provide capacity for Intel Foundry Services (IFS) customers.
The announcement comes after U.S. President Joe Biden signed the CHIPS and Science Act into law, which included provision of $52.7 billion in subsidies for U.S. semiconductor production and research.
“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 U.S.,” said David Zinsner, Intel CFO.
The deal follows a memorandum of understanding between Brookfield and Intel signed earlier this year to explore project finance options.
“By combining Brookfield’s access to large-scale capital with Intel’s industry leadership, we are furthering the advancement of leading semiconductor production capabilities,” said Sam Pollock, Brookfield Infrastructure CEO.