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Intel gets cash injection from asset manager for chip fabs

Intel is going to great lengths to become the blocking leader in the semiconductor sector. However, since this offensive is accompanied by many costs, the US chip expert is now seeking financial support from Brookfield. The asset manager lets jump for Intel now 15 million US dollar, as Intel in a press release announces.

Intel wants to become semiconductor king

Semiconductors are in short supply worldwide. Broken supply chains and aftershocks of the Corona pandemic are probably the two most weighty causes. Accordingly, the EU and the USA are now creating attractive subsidy models to accelerate the construction of new chip factories. Germany also plays a major role in this. In this country, Intel wants to build a large chip factory in Magdeburg, which will receive a total of 6.8 billion euros in subsidies from the EU and the federal government. But the chip expert has big plans not only in this country. New factories are also to be built in the USA. More specifically, Intel is currently planning to build two fabs in Arizona.

As we reported in June, however, U.S. politics is apparently not proving quite as generous as in our climes. According to the company’s own information, the chip company probably lacks 100 billion US dollars for the construction of the new factories. Now Intel seems to have had enough and is going in search of other financiers. One became fündig in the private economy. With Brookfield Asset Management, they were able to land a big fish. The Canadian-based asset manager wants to raise a whopping 15 billion US dollars. Together with the investment money that Intel is already spending on factory construction, this brings the total to 30 billion US dollars.

Original investment clearly topped

The fact that the construction of the two new factories is supported by a high investment sum is not new. However, Intel initially still spoke of 20 billion US dollars. By participating in the construction, Brookfield has secured shares in the two new factory buildings. To be more precise, the Canadians will own 49 percent of the two factories, in line with the level of investment. At least for the time being. After all, Intel probably plans to buy back the shares piece by piece once construction is complete.

Competition with TSMC

When you look at global semiconductor production, there’s no getting around Taiwan. The island nation, which is currently causing a lot of tension between China and the U.S., is responsible for two-thirds of global semiconductor production. Yet it is TSMC that is considered the world’s blocking leader in semiconductor manufacturing. Because of the Taiwan conflict, industry experts now fear that the chip crisis could be fueled even further. Consequently, Intel not only has an economic interest in replacing TSMC as number one. On top of that, the company is getting a tailwind from politicians. However, since the source of subsidies in the U.S. is apparently not yet proving too fruitful, the search for private backers makes perfect sense.

Simon Lüthje

I am co-founder of this blog and am very interested in everything that has to do with technology, but I also like to play games. I was born in Hamburg, but now I live in Bad Segeberg.

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Intel is going to great lengths to become the blocking leader in the semiconductor sector. However, since this offensive is accompanied by many costs, the US chip expert is now seeking financial support from Brookfield. The asset manager lets jump for Intel now 15 million US dollar, as Intel in a press release announces. Intel … (Weiterlesen...)

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