Ontario Construction News staff writer
Brookfield Infrastructure Partners LP has signed a deal with Intel Corp. to help build a semiconductor fabrication facility in Chandler, Ariz.
Under the agreement, Brookfield Infrastructure will jointly fund Intel’s under-construction semiconductor fabrication facility with up to US$15 billion for a 49 per cent stake in the expansion at its Ocotillo campus.
The deal follows a memorandum of understanding between Brookfield and Intel signed earlier this year and supports the build-out of U.S. semiconductor manufacturing capabilities.
It’s the largest private investment of any kind in Arizona history.
“Intel’s continued expansion of its largest, most advanced manufacturing site in the world exemplifies the presence of innovation in Chandler,” said Chandler Mayor Kevin Hartke. “A talented workforce, excellent quality of life, proactive planning and decades of infrastructure investments enable global innovators like Intel to excel in our community.”
Intel says the expansion will add more than 3,000 construction jobs while the fabrication facilities are being built. Intel said construction is slated to begin later this year.
Micah Miranda, Chandler’s Economic Development Director, noted that an investment of this magnitude has significant supply chain implications for local businesses as Intel annually spends about $1.5 billion with Chandler-based suppliers and another $3 billion with other Arizona-based suppliers.
“Existing and prospective Intel suppliers can connect with our economic development team for assistance with office and industrial space site selection in Chandler,” said Miranda.
Funding is expected to come primarily from retained operating cash flow and proceeds from our capital recycling program, with the majority funded closer to facility commissioning.
The transaction is expected to close by the end of the year, subject to customary closing conditions.
Brookfield Infrastructure is part of the Brookfield Asset Management family of companies.