Intel, Languishing At 5 Year Lows, Inks $30B Expansion Deal With Brookfield

Intel, Languishing At 5 Year Lows, Inks $30B Expansion Deal With Brookfield
  • Intel Corp INTC and Brookfield Asset Management Inc BAM agreed to jointly fund up to $30 billion for the U.S. chipmaker's leading-edge chip factories in Arizona.
  • Brookfield's infrastructure affiliate will invest up to $15 billion for a 49% stake in the expansion project. 
  • At the same time, Intel will retain majority ownership and operating control of the two chip factories meant to make advanced chips in Chandler, Arizona.
  • Also Read: TSMC Clients To Bargain Over Foundry Prices
  • Recently, the U.S. approved the Chips Act offering $52.7 billion in subsidies for U.S. semiconductor production and research.
  • Intel, Taiwan Semiconductor Manufacturing Company Ltd TSM, all of which are now building new chip fabrication facilities worth tens of billions in the U.S., are the frontrunners for a sizable chunk of the grant.
  • Intel clocked a 22% revenue decline in Q2 to $15.3 billion, missing the consensus citing "continued adverse market conditions."
  • Intel's EPS of $0.29 missed the consensus.
  • Intel's Q3 and FY22 guidance were below the consensus.
  • Price Action: INTC shares traded higher by 0.62% at $34.05 on the last check Tuesday.

Posted In: BriefsNewsTech