Intel Signs $30 Billion Funding Partnership With Brookfield To Finance Chip-Factory Expansion (wsj.com) 10
Intel has struck an unusual $30 billion funding partnership with Brookfield Asset Management to help finance its massive factory expansion ambitions, signaling some big investors are upbeat about the long-term demand for semiconductors. From a report: The agreement with the publicly traded Canadian asset-management firm is the first of what could be a series of such arrangements Intel pursues to underpin Chief Executive Pat Gelsinger's push to make the company a leading contract chip maker and regain its manufacturing advantage over competitors in Taiwan and South Korea. Under the deal, which company executives described as a first of its kind for the industry, Intel would fund 51% of the cost of building new chip-making facilities in Chandler, Ariz., and will have a controlling stake in the financing vehicle that would own the new factories, Intel Chief Financial Officer David Zinsner said. Brookfield will own the remainder of the equity and the companies will split the revenue that comes out of the factories, he added.
Will Hell Freeze Over? (Score:1)
Upbeat (Score:3)
Big investors are upbeat about free government money.
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If they're using their own money and investor money, they don't need the taxpayers to prop up their failing company. That should save us a few billion right there since we'll never get that money back if Intel gets it.
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If they're using their own money and investor money, they don't need the taxpayers to prop up their failing company. That should save us a few billion right there since we'll never get that money back if Intel gets it.
Taxpayer money is not being used to "prop up their failing company". It's being used to bribe local services from the Too Big to Fail company in an industry where it takes billions of dollars to get facilities up and running. It's far more similar to smaller towns offering tax deals to companies like Walmart to open a location there instead of continuing to watch citizens go to other towns for their purchases. Walmart's not going to go under without it, but the town sure has an interest in the jobs and reve
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You could try blow and hookers too I'd guess, but that's going to make for some tough headlines.
I predict the headline would be "local hookers unionize for better pay and working conditions"
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If we want to diversify fabrication to get out of the trap we've set for ourselves, that's going to take money, and lots of it, and it strikes me that the government, as an instrument of the people, has pretty solid reasons to assist in that diversification.
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But we didn't, so here are we are. You don't get turn back the calendar and re-run events with current knowledge. You work with what you have, and what is needed now is injections of huge amounts of cash to repatriate supply chains to friendly territory.
Arizona? (Score:4, Interesting)
Intel chose one of the states with severe water shortages? Is that the best place to build semiconductors? [smh]
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Intel chose one of the states with severe water shortages? Is that the best place to build semiconductors?
It's the best place for Intel to build semiconductors. Intel operates four plants at that location in Arizona right now. They have broken ground and begun construction on two more, what they're calling Fabs 52 and 62, which is what this is paying for. The advantage of proximity to four working fabs outweighs any disadvantage of having to secure a water supply in a desert.
The fabs don't exist in a vacuum. Building them somewhere else would require recreating all of the surrounding infrastructure and supp