Intel announced a $ 30 billion semiconductor joint investment program
Intel announced the ‘Semiconductor Joint Investment Program’ (SCIP), which collaborates with external asset managers on the 23rd.
The SCIP aims to maintain the cash flow and financial structure by reducing the burden on the huge cost of the trillion units in the semiconductor production facility that Intel will build in the future with external investors and asset managers.
The first target of SCIP is two semiconductor production facilities, which are being built in Chandler, Arizona, USA, in the second half of last year.
Intel said, We signed a memorandum of understanding (MOU) in February this year with the infrastructure of Brookfield Asset Management, a Canadian investment group, and signed a contract for joint investments. It will be a new funding source for.
■ Joint investment of $ 15 billion in the expansion of Arizona’s production facilities
Intel announced that it would invest more than $ 20 billion (about 36 trillion won) in Chandler, Arizona, USA, in September of the same year, after declaring the re-induction of the foundry in March last year.
Under the agreement, Intel and Brookfield Asset Management will jointly invest $ 30 billion (about 39 trillion won) for $ 15 billion in the production facility of Chandler’s materials for Arizona, which is currently under construction. The stake is 51%in Intel and 49%of Brookfield Asset Management.
David Jeansner Intel CFO (Chief Financial Officer) told the US Wall Street Journal that the amount of $ 20 billion last year was initial forecast, and the cost increased by about $ 10 billion (about 13 trillion won) due to inflation.
Intel will pay about 49% of the revenue from the two production facilities instead of having ownership and operating rights of the newly built production facilities. The joint investment contract for Intel and Brookfield Asset Management will be completed by the end of this year.
■ Intel Improvement of cash flows · Prospect of net profit per share
The significance of this SCIP is to maintain the cash flow and financial structure for additional investments in the capital-intensive semiconductor industry.
In the next few years, Intel will secure an additional $ 15 billion (about 19 trillion won) of cash, and net profit per share will be guaranteed in the construction and mass production process.
In addition to Arizona, Intel is building a new semiconductor production facility in various regions such as Ohio, Germany, Magdeburg, and Ireland Raylip, or expanding its existing production facilities.
An Intel official replied that the SCIP program would be reviewed according to the situation in the question of whether the SCIP program will be expanded to these regions.
** ■ Half of cost investment burden…
Intel has signed a joint investment agreement for Brookfield Asset Management, reducing the burden on the construction of the world’s semiconductor production facilities such as the United States and Europe, and the backlash of investors.
US President Cho Biden signed the US Semiconductor Industry Support Act, which aims to subsidize $ 52 billion in the White House on September 9, but it takes a considerable time to be visible.
In fact, at the end of 2020, the US behavioral fund, Third Point, sent an open letter to Intel to consider separating semiconductor designs and manufacturing, and demanded shareholders’ profits.