Intel Reaches Agreement with Brookfield on Chip Investment

Intel, one of the world's largest microchip makers, has signed an agreement with Canada-based asset manager Brookfield Asset Management to invest up to $30 billion in chip factories in Arizona.

Intel, a technology company based in the United States, announced today the Semiconductor Co-Investment Program (SCIP), the first of its kind. In the statement recorded by Intel, it was stated that the program brings a new financing model to the capital-intensive semiconductor industry. Within the scope of the program, Intel signed an agreement with the infrastructure subsidiary of Brookfield Asset Management, one of the world's largest asset managers, underlining that this will provide Intel with a new capital pool to expand its production. It was reminded that the agreement follows the memorandum of understanding signed by the two companies in February. Under the agreement, Intel will jointly invest up to $30 billion in the previously announced manufacturing expansion at Intel's Ocotillo campus in Arizona, with Intel financing 51 percent of the total project cost and Brookfield 49 percent. Intel Chief Financial Officer (CFO) David Zinsner said the deal builds on the momentum gained from the Creating Complementary Incentives to Build Semiconductors for America (CHIPS) and Science Act, which took effect in the US at the beginning of the month. The CHIPS and Science Act was signed into law by US President Joe Biden on August 9.