The companies will pay for the two fabs previously announced by Intel in Chandler, Arizona on a 51-49% basis with Intel taking the 51% share plus operating control.
“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,” said Intel CFO David Zinsner.
The money involved could be up to $30 billion.
The deal means Intel can keep borrowing to fund building more capacity which will be 25% underwritten by the US government under the Chips Act.
The Brookfield deal is expected to increase Intel’s free cash flow by $15 billion over the next several years, it said.
Intel said it expected to replicate the new funding model, called the semiconductor co-investment programme, “with other partners for other buildouts globally”.
More information can be found here.
