On Tuesday, the U.S. chipmaker Intel Corp. (INTC.O) and Canada’s Brookfield Asset Management (BAMa.TO) agreed to work together to invest up to $30 billion for Arizona’s cutting-edge chip facilities.
The action was taken after US President Joe Biden signed the CHIPS and Science Act into law earlier this month, which includes $52.7 billion in subsidies for US semiconductor research and production.
The infrastructure subsidiary of Brookfield will contribute up to $15 billion for a 49% investment in the expansion project, while Intel would maintain majority ownership and operational control over the two Chandler, Arizona, chip plants intended to produce advanced chips.
The agreement between the businesses “builds on the momentum from the recent enactment of the CHIPS Act in the U.S.,” according to Intel finance director David Zinsner.
The investment is a part of a partnership that Intel and Brookfield reached in February of this year to investigate project financing possibilities to aid in financing future Intel manufacturing facilities.
Intel had announced multibillion dollar investments across Europe and the US when Pat Gelsinger became control of the company in early 2021.
They were designed to increase Intel’s chip manufacturing after the sector experienced a supply shortage that lasted more than two years and halted the production of everything from vehicles to computers.
