Antoine GaraIntel has struck a partnership with Brookfield Infrastructure Partners to fund the development of a $30 billion semiconductor fabrication plant in Arizona, as the chipmaker works to finance construction on large domestic manufacturing plants following the approval of landmark semiconductor legislation in the US.
“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. By taking in the Canadian asset management group as a large private capital partner, Intel said the deal would provide it with financial flexibility to continue funding its rising dividend. The partnership is expected to bolster Intel’s free cash flow by $15 billion over the next several years, the company said.
“This landmark arrangement is an important step forward for Intel’s Smart Capital approach and builds on the momentum from the recent passage of the Chips Act in the US,” Zinsner said.