Intel Corp. has signed a definitive agreement with the infrastructure affiliate of Brookfield Asset Management to invest in chip factories.
The agreement is part of Intel’s new first-of-its-kind semiconductor co-investment program (SCIP) that introduces a new funding model to the capital-intensive semiconductor industry. Brookfield’s investment will provide Intel with a new, expanded pool of capital for manufacturing build-outs.
Intel’s agreement with Brookfield follows a memorandum of understanding that was announced in February. Under the terms of the agreement, the companies will jointly invest up to $30 billion in Intel’s previously announced manufacturing expansion at its Ocotillo campus in Chandler, Ariz., with Intel funding 51 percent and Brookfield funding 49 percent of the total project cost. Intel will retain majority ownership and operating control of the two new chip factories in Chandler.
The transaction with Brookfield is expected to close