Intel Signs $30 Billion Financing Deal With Brookfield to Expand Chip Factories

WebProNews
Intel Signs $30 Billion Financing Deal With Brookfield to Expand Chip Factories

Intel is pulling an industry first, partnering with Brookfield Asset Management Inc to help fund its chip factory expansion.

Intel is working on expanding its US-based chip production as lawmakers look to help the US become less dependent on foreign semiconductor manufacturing. In an unprecedented move, Intel is partnering with Brookfield to help fund its $30 billion expansion plans, according to The Wall Street Journal.

Intel will fund 51% of the expansion, with Brookfield funding the rest. Intel and Brookfield will split ownership of the financing entity that will own the factories, as well as the resulting profits, although Intel will retain majority ownership.

While the financing arrangement is new for the semiconductor industry, it’s a relatively common practice in others, such as telecommunications and energy. Given the challenges Intel is facing, not the least of which is the surprise $500 million loss the company recently reported, the deal made sense.

“We have gotten behind, and that requires a fairly aggressive investment cycle over the next few years, which is not a place Intel typically finds itself,” said Intel Chief Financial Officer David Zinsner.

Intel Signs $30 Billion Financing Deal With Brookfield to Expand Chip Factories
Matt Milano

from WebProNews https://ift.tt/K59yG08