Intel Signs $30 Billion Funding Partnership With Brookfield to Finance Chip-Factory Expansion
Brookfield is a publicly traded Canadian asset-management company. Intel is likely to announce additional deals, to bankroll its push to bring back production level chip production to the US, and push beyond what the Taiwanese and South Korean fabs are capable of doing.
Under the deal, a first of its kind for the industry, Intel would fund 51% of the cost of building new chip-making facilities in Chandler, Ariz., and will have a controlling stake in the financing vehicle that would own the new factories. Brookfield will own the remainder of the equity and the companies will split the revenue that comes out of the factories, he added.
Such deals are common in the energy and telecommunications and are now trickling into the chip business because of its massive capital investment requirements. Not to mention the new US spending bill, dedicating $Bs to bering mass production back to the US.
Intel is building 2 new factories in Arizona, and expects to be spending $100B on new plant complexes in Ohio and Germany, to regain dominance in the European market.
TSMC announced it's spending $100B over the next 3 years to boost output, and Samsung said it will spend $205 B doing the same, over the next 3 years.
Under the deal, a first of its kind for the industry, Intel would fund 51% of the cost of building new chip-making facilities in Chandler, Ariz., and will have a controlling stake in the financing vehicle that would own the new factories. Brookfield will own the remainder of the equity and the companies will split the revenue that comes out of the factories, he added.
Such deals are common in the energy and telecommunications and are now trickling into the chip business because of its massive capital investment requirements. Not to mention the new US spending bill, dedicating $Bs to bering mass production back to the US.
Intel is building 2 new factories in Arizona, and expects to be spending $100B on new plant complexes in Ohio and Germany, to regain dominance in the European market.
TSMC announced it's spending $100B over the next 3 years to boost output, and Samsung said it will spend $205 B doing the same, over the next 3 years.
