INTEL AND BROOKFIELD INFRASTRUCTURE TO CONTRIBUTE TO GROWTH IF SEMICONDUCTOR INDUSTRY

Intel Corporation has entered into an agreement to contribute to Arizona semiconductor industry by funding. The corporation signed a joint agreement with Brookfield Asset Management, a subsidiary of Brookfield Infrastructure, in that regard.

An estimated $30 billion is said to pushed into the industry to encourage more chip making “on shore.” Intel will have the majority of shares in the project pegged at 51% while Brookfield Asset Management retains the remainder.

Chief Finance Officer, David Zinsner spoke about the significance of the agreement to further improve the firm’s Smart Capital approach, one that Intel has adopted to aid in the fund growth as well as their IDM 2.0 strategy.

“Semiconductor manufacturing is among the most capital-intensive industries in the world, and Intel’s bold IDM 2.0 strategy demands a unique funding approach. 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.”, he further disclosed.

Chief Executive Officer at Brookfield Infrastructure, Sam Pollock has stated : “By combining Brookfield's access to large-scale capital with Intel’s industry leadership, we are furthering the advancement of leading semiconductor production capabilities. Leveraging our partnership experience in other industries, we are pleased to come together with Intel in this important investment that will form part of the long-term digital backbone of the global economy.”

The agreement between the two will help Intel to “tap into a new pool of capital below its cost of equity while protecting its cash and debt capacity”, thus being able to contribute to future projects.