Brookfield to invest $15bn in Intel’s semiconductor manufacturing build-out

Intel will have a 51 percent stake in this joint venture.

  • The transaction is expected to close the end of this year
  • The JV supports Intel’s continued build-out of US semiconductor manufacturing capabilities
    BIP’s equity portion for this investment will be phased over the duration of the construction period and is anticipated to be $500 million to $750 million in aggregate

Brookfield Infrastructure is investing up to $15 billion for a 49 percent stake in Intel’s manufacturing expansion at its Ocotillo campus in Chandler, Arizona. Intel will have a 51 percent stake in the joint venture.

The arrangement supports Intel’s continued build-out of US semiconductor manufacturing capabilities. It will also replenish Brookfield’s existing backlog of capital projects that near completion this year, including the Heartland Petrochemical Complex and the second phase of our build-out of electricity transmission lines in Brazil.

Concurrent with transaction signing, Brookfield secured binding non-recourse financing to fund a significant portion of its capital investment in this arrangement with Intel. Its equity portion for this investment will be phased over the duration of the construction period and is anticipated to be $500 million to $750 million in aggregate. Funding is expected to be sourced primarily from retained operating cash flow and proceeds from Brookfield’s recycling program, with the majority funded closer to facility commissioning.

The deal is expected to close the end of 2022, subject to customary closing conditions.

Brookfield Infrastructure is a leading global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, midstream and data sectors across North and South America, Asia Pacific and Europe.

Toronto-based Brookfield Asset Management has over $750 billion of assets under management.