Intel Signs Contract with Brookfield to Financing Chip Factories

Aug 24, 2022

Intel Signs Contract with Brookfield to Financing Chip Factories

To fund its chip-making goals, Intel is resorting to financial engineering.

The business signed a binding deal on Tuesday with a Brookfield Asset Management affiliate to spend up to $30 billion in two "leading-edge" chip facilities in Chandler, Arizona. According to the terms of the agreement, Intel will fund 51% of the project, while Brookfield will fund the other 49%.

According to a news release, Intel will obtain majority ownership and operational management of the two plants, which may be utilized for Intel's products or by its foundry clients. The transaction is scheduled to be finalized before the end of the year.

Intel anticipates that the collaboration will bring a $15 billion cumulative boost to its adjusted free cash flow over the next several years as plants are built and manufacturing ramps up.

In early trading Tuesday, Intel shares increased 0.8% to $34.12, while the S&P 500 was marginally greater.

During a conference call with Wall Street investors, Intel executives stated that Brookfield would get a portion of the cash flows generated by the plants once they are operating. According to the business, the entire cost of the fundraising arrangement will be higher than the cost of debt but lower than the cost of equity for Intel, with a range of 4.4% to 8.5%.

"Our arrangement with Brookfield is a first in our industry, and we think it will allow us to improve flexibility while keeping capacity on our financial sheet to create a more diverse and robust supply chain," said CFO David Zinsner in a statement.

Intel has had a difficult quarter. The business reported June-quarter financial results last month that fell significantly short of Wall Street expectations. It also issued a dismal view for the current quarter and dramatically decreased its full-year prediction at the time.

The corporation blamed a worsening macroeconomic situation but also admitted that some of its problems were self-inflicted owing to product execution difficulties.

An Intel official stated earlier this year that the manufacture of its next-generation server CPU would begin later than expected due to the company's need for extra testing time.

The corporation has embarked on a radical turnaround strategy. It is developing its foundry business and has outlined an ambitious product roadmap for the future. The agreement with Brookfield brings the plans closer to completion at the expense of some future financial benefits.

Subscribe Our Newsletter

Insider News: Apple Working To Bring More Financial Services In-House
Insider News: Apple Working To Bring More Financial Services In-House

A multi-year plan would centralize a wide variety of financial features, according to the sources, who requested anonymity because the plans are not public. This comprises payment processing, credit risk assessment, fraud analysis, and extra customer support responsibilities such as dispute resolution.

Companies
Demand, however, was unable to keep up with the intense competition. Additionally, the industry has been impacted by President Xi Jinping's massive crackdown on China's internet giants. The government fined several community-buying platforms last year for excessive spending on promotions.
China’s Massive Community-Buying Industry Is Collapsing

Demand, however, was unable to keep up with the intense competition. Additionally, the industry has been impacted by President Xi Jinping's massive crackdown on China's internet giants. The government fined several community-buying platforms last year for excessive spending on promotions.

Banks and Finance
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Constantine

Top Solana Meme Coins in 2025: Best Presales and Where to Buy
Explore the best Solana meme coins of 2025, including top presales, trends, and where to buy. Discover how to invest in the future of Solana meme coins.

discover
What is Slippage in Trading? - Definition

Constantine

What is Slippage in Trading? – Definition

Opening a deal on the financial market is accompanied by some kind of magic, don't you agree? At least, that's what many beginning traders think. Sometimes they "for some reason" start each deal with a small minus (it's a spread), then the position is not always clearly opened at the price they requested.

Forex Business
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiriesb2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Hazem

    MetaTrader vs cTrader: Which Trading Platform Shall You Choose?

    MetaTrader vs cTrader: The Full Breakdown

    Сonstantine

    Will Dogecoin Reach $1? Tokenomics and Price Analysis

    Will Dogecoin Reach 1 Dollar Analysis

    Сonstantine

    How to Get a Crypto Exchange License?

    How to Get Crypto Exchange License

    Сonstantine

    Best Crypto to Buy Now: Guide for Investors

    Best Crypto To Buy Now

    Hazem

    Grok vs ChatGPT: What’s the Best AI Assistant You Need in 2025

    Grok vs ChatGPT

    Сonstantine

    How to Choose the Right Liquidity Provider for Your Brokerage

    How to Choose the Right Liquidity Provider for Your Brokerage

    Сonstantine

    Low-Latency Trading Defined: Speed, Strategy and Technology

    Low-Latency Trading Explained

    Hazem

    How Liquidity Depth Affects Slippage in High-Volume Trading

    Liquidity depth and slippage in trading

    Hazem

    What is FIX API Liquidity Connection and How Does it Power Institutional Trading?

    FIX API in institutional trading

    Сonstantine

    OTC Trading Strategies and Technologies to Succeed in Over-the-Counter Markets

    OTC Trading Strategies

    Alexander

    What is OTC Trading? A Complete Guide for 2025

    what is OTC

    Alexander

    Synthetic Futures: A Trader’s Guide to Replicating Positions with Options

    How to Trade Synthetic Futures

    Сonstantine

    Order Book Depth: What It Is And Why It Matters?

    Order Book Depth What It is And Why It Matters

    Alexander

    Spot vs Perpetual Futures: Which Is Right for You?

    Spot vs Perpetual Futures explained

    Hazem

    5 Reasons Traders Are Switching to Perpetual Futures

    5 Reasons to Switch to Perpetual Futures

    Constantine

    Top 3 Liquidity Challenges Facing New Exchanges and How to Solve Them

    Top 3 Liquidity Challenges Facing New Exchanges Today

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.