Intel reaches agreement with Brookfield to jointly invest in Arizona chip factories

Intel Corp. INTC, -4.35% said Tuesday that it had reached an agreement with an infrastructure associate of Brookfield Asset Management to jointly invest in chip factories. Intel billed the arrangement in a press release as “a new funding model [for] the capital-intensive semiconductor industry.” Through the arrangement, the companies will jointly invest up to $30 billion in Arizona chip factories, after Intel previously announced plans to build two new factories at its Ocotillo campus in Chandler, Ariz. Intel will fund 51% of the investment and retain operating control of the facilities, while Brookfield will fund 49% of the total project cost. “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,” Intel Chief Financial Officer David Zinsner said in the release. Intel shares were up 0.5% in premarket trading Tuesday. They’ve fallen 34% so far in 2022 as the S&P 500 SPX, -2.14% has dropped 13%.