Intel’s Smart Capital Arrangement With Brookfield Provides Fuel to IDM 2.0 Fire; No Change to FVE

On Aug. 23, Intel announced a new co-investment program with Brookfield Asset Management to help fund Intel’s manufacturing expansion in Arizona and thus accelerate the firm’s IDM 2.0 strategy. Specifically, Intel will fund 51% and Brookfield will fund 49% of the $30 billion investment. Management has been stressing it expects to offset part of the hefty capital expenditure outlays required for its internal and foundry manufacturing aspirations via smart capital offsets, or government subsidies, private investment programs, and foundry customer prepayments.