Intel revealed Brookfield Asset Management as the first company to participate in what the company stated was a new approach for financing chip manufacturing plants, as it advances a plan to boost domestic production.

The chipmaker’s semiconductor co-investment programme (SCIP) aims to expand the pool of capital available to fund construction of factories.

Intel and Brookfield Asset Management agreed to jointly invest up to $30 billion into factories in the state of Arizona, which were first announced in 2021.

Brookfield Asset Management will have a 49 per cent stake in the joint venture, with Intel holding the majority share and control over operating the factories.

Intel finance chief David Zinsner stated the arrangement between the companies built on the momentum from the recent passage of the CHIPS and Science Act in the US and noted semiconductor manufacturing was among the most capital-intensive industries in the world.

Over the course of the next few years, the partnership is expected to provide a $15 billion cumulative benefit to Intel’s adjusted free cash flow and boost its earnings per share during the construction and expansion periods.

The transaction is expected to close by year-end, subject to customary closing conditions.

Intel CEO Pat Gelsinger (pictured) announced multi-billion investments across the United States and Europe in 2021, but the vendor reportedly later paused construction on a $20 billion facility in Ohio due to delays in the US passing the funding legislation.