Brookfield Infrastructure
has announced that it will be investing $15 billion in Intel’s manufacturing expansion of the Ocotillo campus in Chandler, Arizona. For the money, Brookfield Infrastructure will gain a 49% stake in the factory, while Intel keeps a controlling 51% share. The deal is expected to be closed by the end of the year after it passes certain closing conditions.
The Canadian company said that it’ll be helping Intel fund the project with retained operating cash flow and proceeds from its capital recycling programme. Most of the money is expected to be paid as the facility nears its completion and gets set to start operations, Brookfield Infrastructure said.
The funding from Brookfield Infrastructure will be made through
a new programme that Intel has created called the Semiconductor Co-Investment Program (SCIP). This will act as a vehicle to help Intel fund the “capital-intensive” expansion of its semiconductor operations.
Commenting on the news, Sam Pollock, CEO of Brookfield Infrastructure, said:
“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.”
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