Brookfield Asset Management will be carrying a multibillion-dollar chip on its shoulder for the foreseeable future.
The Canadian firm inked a $30 billion partnership with Intel to finance the development of chip-building facilities in Chandler, Arizona, the Wall Street Journal reported.
Under the deal, Intel will shoulder 51 percent of the building costs and have the controlling stake in the financing vehicle that will own the factories. Brookfield will own the rest of the equity. The companies will split the revenue from the facilities; the deal is expected to close by the end of the year.
Intel’s plans to expand its Chandler campus by building two computer chip manufacturing facilities emerged in early 2021. At the time, the computer chip giant’s $20 billion expansion was believed to be the largest private sector investment in state history. Costs have risen since then due to inflation.
Intel plans to employ 3,000 people at the two factories, situated on its 700-acre Ocotillo campus where 12,000 are already employed. The development announcement came only months after Taiwan Semiconductor Manufacturing Corporation revealed plans for its own $12 billion chip manufacturing campus in north Phoenix.
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A global manufacturing race is underway to be the leading chip maker in the world, where Intel has been displaced at the top by competitors in Taiwan and South Korea, such as Samsung. Industry officials project annual semiconductor sales to double by the end of the decade, potentially topping $1 trillion.
Intel is also investing up to $100 billion to build what could be the world’s largest chip factory in New Albany, Ohio. The initial investment will begin at $20 billion as the company seeks to build eight plants on the 1,000-acre site.
— Holden Walter-Warner