Intel Chasing Samsung Teams Up with Brookfield to Invest $30 Billion in U.S. Semiconductor Plant

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] U.S. semiconductor company Intel has signed a $30 billion (approximately 40 trillion KRW) partnership with Brookfield Asset Management to build a semiconductor factory in Arizona. This is part of an investment strategy to regain market share lost to Samsung Electronics and Taiwan's TSMC and to advance as a leader in the semiconductor industry.

According to the Wall Street Journal (WSJ) and others, on the 23rd (local time), Intel announced that it had signed this partnership with Brookfield Asset Management. The two companies will establish a joint venture to build a semiconductor factory in Chandler, Arizona. Intel will hold a 51% stake, and Brookfield will hold 49%. The profits generated from the new factory will be shared between the two companies.

Intel described this partnership as "a new capital-raising model for the capital-intensive semiconductor industry."

Brookfield Asset Management manages assets worth $750 billion. Major foreign media outlets evaluated this large-scale investment as indicating an improved long-term outlook for semiconductors. Industry insiders, including Intel CEO Pat Gelsinger, expect annual semiconductor sales to exceed $1 trillion by 2030, nearly doubling current figures.

Previously, Intel announced plans to invest $20 billion in the Arizona region to expand semiconductor production facilities. Intel CFO David Zinsner emphasized that this is the first step toward expanding semiconductor production capacity.

Meanwhile, in the New York stock market afternoon session, Intel's stock price is trading at a level 0.66% higher than the previous close.