Intel, Brookfield to Jointly Fund $30B Build of Intel's 2 Ariz. Fabs

Intel signed a definitive agreement with Brookfield Asset Management to jointly invest up to $30 billion to build the two previously announced Intel semiconductor fabs in Chandler, Arizona, with Intel funding 51% and Brookfield the rest of the “total project cost,” Intel said Tuesday. Intel will retain majority ownership and operating control of the two new fabs, which will support long-term demand for Intel’s products and provide capacity for Intel Foundry Services customers, it said. The Brookfield transaction is expected to close by the end of 2022, it said. Intel broke ground on the Chandler fabs in September (see 2109240043), saying then the new fabs will be the largest in the U.S., and will be built for $20 billion in Intel’s money, with no mention of outside investors. The “landmark arrangement” with Brookfield “builds on the momentum" from the recent enactment of the Chips and Science Act (see 2208090062), said Intel Chief Financial Officer David Zinsner. Semiconductor manufacturing “is among the most capital-intensive industries in the world,” and Intel’s strategy “demands a unique funding approach,” he said. “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.”