(RTTNews) – Brookfield Infrastructure Partners L.P. (BIP) said on Tuesday that it has signed a deal with Intel Corp. (INTC) to invest up to $15 billion for a 49 percent stake in Intel’s multi-year production expansion project at its Ocotillo campus in Chandler, Arizona. Intel said the joint investment in the semiconductor co-Investment program will be up to $30 billion.
The transaction, expected to be completed by the end of 2022, will allow Intel to own the remaining 51 percent stake in the project and operating control of the two new leading-edge chip factories in Chandler. The project is part of Intel’s integrated device manufacturing or IDM 2.0.
Further, Brookfield has also secured binding non-recourse financing to fund a significant portion of its capital investment in the arrangement with Intel.
The Toronto-based global infrastructure company expects that the equity portion for this investment will be phased over the duration of the construction period and is anticipated to be $500 million to $750 million in aggregate.
Funding is expected to be sourced primarily from retained operating cash flow and proceeds from its capital recycling program.