The Asia-Pacific region is responsible for roughly 75% of all semiconductor manufacturing, which has left the U.S. and other western countries in a tough spot since the pandemic. 😓
As a result, the U.S. and other western countries have prioritized encouraging investment in semiconductor manufacturing, with measures such as the CHIPS for America ACT.
Today, that trend continued as chipmaker Intel announced a deal with Canada’s Brookfield Asset Management to fund up to $30 billion for the company’s state-of-the-art chip factories in Arizona. 🏭
Under the agreement, Brookfield’s infrastructure affiliate will invest up to $15 billion for a 49% stake in the expansion project. Intel will retain majority ownership and operating control of the two factories.
The partnership allows Intel to fund its expansion while preserving capacity for financing if needed for other business priorities. Meanwhile, for Brookfield, this presents a cash-flow-generating investment opportunity in a growing U.S. semiconductor space. 👍