Intel Set to Seek $2 Billion from Partner for a new Chip Plant
Intel Corp. is seeking to raise at least $2 billion in equity to help fund a semiconductor fabrication facility in Ireland, according to people with knowledge of the matter.
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@intel is seeking to raise at least $2 billion in equity to help fund a semiconductor fabrication facility in Ireland, according to people with knowledge of the matter, Bloomberg reports#intel #semiconductor #chips pic.twitter.com/Ey1uflad3u
— The_Journalbiz (@the_journalbiz) February 14, 2024
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The chipmaking giant, which is working with an adviser, has begun soliciting interest from potential investors, said the people, who requested anonymity discussing confidential information.
A transaction would follow the chipmaker’s 2022 deal with Brookfield Infrastructure Partners, in which the firm agreed to invest as much as $15 billion for a 49% stake in Intel’s manufacturing expansion at its Ocotillo campus in Chandler, Arizona.
For Intel, bringing in a deep-pocketed investor to cover 49% of the plant’s cost helps to support finances stretched by an unprecedented expansion plan, a tough competitive landscape, and a steep industrywide downturn.
In mid-January the chipmaker gave one of its gloomiest forecasts ever, sending shares tumbling.
When the deal was announced in August, Intel described Brookfield’s rate of return as “somewhere between its cost of debt and equity,” which it pegged between about 4% and 8.5%. Intel declined to provide more details.
