Intel rises as it signs $30B funding deal with Brookfield to help pay for expansion
Justin Sullivan

Intel (NASDAQ:INTC) shares rose nearly 2% on Tuesday after the semiconductor giant said it had signed a deal with Brookfield Infrastructure Partners (NYSE:BIP) (BAM) worth up to $30B to help pay for its factory expansion plans.
Known as a Semiconductor Co-Investment Program, Intel (INTC) said the deal would help accelerate its IDM 2.0 strategy. Under the deal, Intel (INTC) will fund 51% of its previously announced expansion at its Ocotillo campus in Arizona, with Brookfield (BAM) paying the remaining 49%. Intel (INTC) will retain majority ownership and operating control of the factory.
In a statement, Intel (INTC) Chief Financial Officer David Zinsner added that it builds on the recent passage of the CHIPS Act in the U.S., which provided $52B in subsidies and grants to the expansion of the domestic production of semiconductors.
"Semiconductor manufacturing is among the most capital-intensive industries in the world, and Intelâs bold IDM 2.0 strategy demands a unique funding approach," Zinsner explained. 
"Our agreement with Brookfield is a first for our industry, and we expect it will allow us to increase flexibility while maintaining capacity on our balance sheet to create a more distributed and resilient supply chain.â
The deal is expected to close by the end of 2022.
In an interview with The Wall Street Journal, Intel's (INTC) Zinsner said the companies will split the revenue from the factory.
Zinsner also told The Journal he was confident that the company would have more co-financing deals as it builds plants in other parts of the world. 
Earlier this year, Intel (INTC) said it would spend as much as $88B over the next decade building out its operations in Europe, including an $18.6B mega fab in Germany. Expected to be included in that $88B is an investment in Italy that could be worth as much as $5B.
On Monday, Intel (INTC) shares hit a five-year low as the broader semiconductor sector fell sharply on worries over recession fears.