Intel-backed JV to raise $3.85bn to fund factory expansion

Foundry JV Holdco was formed for the purpose of issuing debt securities to repay existing credit facilities, refinance debt and fund possible acquisitions. It is jointly owned by Brookfield Infrastructure Partners and Intel Corporation, and its immediate purpose is to invest in Intel's Ocotillo campus in Chandler, Arizona.

Now, the JV is selling USD 3.85 billion of investment-grade bonds in four parts in order to refinance existing debt, accelerate the construction programme and fuel Intel's efforts to compete with Asian chip giants.

The fund raise is the latest move by Intel to regain some momentum in the market. In March, Intel secured nearly USD 20 billion in government grants and loans under the CHIPS Act. The funding will support Intel’s USD 100 billion to build and expand semiconductor facilities in Arizona, Ohio, New Mexico, and Oregon – creating nearly 10,000 industry jobs.