Question The begining of the end of Intel fabs?

[jpiniero]

Intel, Brookfield Sign $30 Billion Deal to Finance Chip Factories

The chip maker’s unusual funding partnership with Brookfield Asset Management signals some big investors are upbeat about long-term semiconductor demand.

www.wsj.com

Intel, Brookfield to invest up to $30 bln in Arizona chip factories

Intel Corp and Canada's Brookfield Asset Management on Tuesday agreed to jointly fund up to $30 billion for the U.S. chipmaker's leading-edge chip factories in Arizona, fueling Intel's ambition to bring more chip production onshore without weighing on its balance sheet.

www.reuters.com

Intel has signed a deal with a hedge fund to finance a $30B fab in Arizona. The hedge fund is kicking in $15B for a 49% stake in this separate entity that will own the fab. Intel will own 51%. IOW this isn't an Intel fab, this is a separate company that Intel owns 51% of. Basically it reeks of the start of them getting out of owning the fabs.

Guess the Free Money from the US wasn't enough for ol Pat.

 

[Doug S]

Intel, Brookfield Sign $30 Billion Deal to Finance Chip Factories

The chip maker’s unusual funding partnership with Brookfield Asset Management signals some big investors are upbeat about long-term semiconductor demand.

www.wsj.com

Intel, Brookfield to invest up to $30 bln in Arizona chip factories

Intel Corp and Canada's Brookfield Asset Management on Tuesday agreed to jointly fund up to $30 billion for the U.S. chipmaker's leading-edge chip factories in Arizona, fueling Intel's ambition to bring more chip production onshore without weighing on its balance sheet.

www.reuters.com

Intel has signed a deal with a hedge fund to finance a $30B fab in Arizona. The hedge fund is kicking in $15B for a 49% stake in this separate entity that will own the fab. Intel will own 51%. IOW this isn't an Intel fab, this is a separate company that Intel owns 51% of. Basically it reeks of the start of them getting out of owning the fabs.

Guess the Free Money from the US wasn't enough for ol Pat.

Or maybe there is a limit in the CHIPS Act for how much money one company can get, so by building a fab that isn't an "Intel" fab they are able to get more.

Or perhaps Intel isn't making enough money to be able to take all the deprecation their new fabs will offer so they are partnering with someone who needs tax writeoffs i.e. a hedge fund.

Lots of possible explanations for this besides Intel getting out of the fab business.

 

[DrMrLordX]

Guess the Free Money from the US wasn't enough for ol Pat.

Either that, or it was enough to finally convince Brookfield to put down their own money. In any case it's getting too expensive for Intel to continue the cutting-edge fab game, so . . .

 

[maddie]

How many more years baring a technological shift, before we have the world fab for advanced nodes, or at least a western one and eastern one?

Look at ASML.

 

[moinmoin]

How many more years baring a technological shift, before we have the world fab for advanced nodes, or at least a western one and eastern one?

Look at ASML.

Shared ownership indeed seems to be the way to go. However hedge funds are unlikely to be a part of it. GloFo could still have been on leading edge nodes if its owner had any interest in it, it didn't. So like with ASML the financing needs to come from companies having vested interest in the technological progress.

The hard part is, TSMC is pretty much already doing that without requiring ownership or additional financing on top. Everything is priced in in their services already.

 

[maddie]

Shared ownership indeed seems to be the way to go. However hedge funds are unlikely to be a part of it. GloFo could still have been on leading edge nodes if its owner had any interest in it, it didn't. So like with ASML the financing needs to come from companies having vested interest in the technological progress.

The hard part is, TSMC is pretty much already doing that without requiring ownership or additional financing on top. Everything is priced in in their services already.

Yep, at present TSMC appears to be heading for sole supremacy. Still not locked in however. A few more years to be sure.