Intel Signs $30 Billion Funding Partnership With Brookfield To Finance Chip-Factory Expansion

Intel has struck an unusual $30 billion funding partnership with Brookfield Asset Management to help finance its massive factory expansion ambitions, signaling some big investors are upbeat about the long-term demand for semiconductors. From a report: The agreement with the publicly traded Canadian asset-management firm is the first of what could be a series of such arrangements Intel pursues to underpin Chief Executive Pat Gelsinger's push to make the company a leading contract chip maker and regain its manufacturing advantage over competitors in Taiwan and South Korea. Under the deal, which company executives described as 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, Intel Chief Financial Officer David Zinsner said. Brookfield will own the remainder of the equity and the companies will split the revenue that comes out of the factories, he added.

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