Intel and Canada’s Brookfield Asset Management agreed to jointly fund up to $30bn for the U.S. chipmaker’s leading-edge chip factories in Arizona, fueling Intel’s ambition to bring more chip production onshore without weighing on its balance sheet.
Brookfield’s infrastructure affiliate will invest up to $15 billion 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.
The two companies didn’t disclose specific terms. David Zinsner, Intel’s finance chief, told analysts the interest rate was between 4.4% and 8.5%, which is more expensive than debt financing but cheaper than equity financing.
The deal also comes after U.S. President Joe Biden this month signed the CHIPS and Science Act into law, which included provision of $52.7 billion in subsidies for U.S. semiconductor production and research.
Read more: Reuters
