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Intel partners for $30B fab investment in Arizona

Intel and Canada’s Brookfield Asset Management have announced a deal to jointly fund up to $30 billion in investments of Intel fabrication facilities in Arizona, saving Intel a lot of money in the process.

The investment follows up on a memorandum of understanding the two firms signed in February to explore finance options to help fund new Intel manufacturing sites. Brookfield will invest up to $15 billion for a 49% stake in the expansion project, while Intel will retain majority ownership and operating control of the two chip factories in Chandler, Arizona.

The deal falls under what is known as the Semiconductor Co-Investment Program (SCIP), a new funding model to the capital-intensive semiconductor industry. As part of the program, Brookfield will provide Intel with a new, expanded pool of capital for manufacturing build-outs. In return, Brookfield gets a cut of the revenue stream.

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Source:: Network World – Data Center