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Intel Corp (NASDAQ: INTC) on Tuesday said Canada’s Brookfield Asset Management and the chipmaker agreed to jointly invest up to $30 billion in Intel’s previously announced manufacturing facilities in Arizona.
The move comes after US President Joe Biden signed the CHIPS and Science Act into law earlier this month, which included a provision of $52.7 billion in subsidies for semiconductor production and research in America.
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 leading-edge chipmaking facilities in Chandler, Arizona.
Intel CFO David Zinsner said the arrangement between the companies “builds on the momentum from the recent passage of the CHIPS Act in the US”.
The investment is part of a deal between Intel and Brookfield, signed in February 2022, to explore project finance options to help fund new manufacturing sites.
After Pat Gelsinger took over as the company’s chief executive in early 2021, Intel announced multi-billion dollar investments across Europe and the United States to increase chip production after the industry went through a two-year long supply crunch that disrupted the production of cars to computers.
Picture Credit: Bloomberg
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