Intel Turns to Private Equity (Again) for Foundry-Expansion Cash
Building and expanding semiconductor factories, particularly those manufacturing cutting-edge chips using the latest and greatest technologies, is a capital-intensive affair. (NASDAQ: INTC) estimates that a typical semiconductor factory takes three years to build and costs roughly $10 billion.
Intel is in the middle of a multiyear strategy shift that will transform the iconic company into a leading semiconductor foundry. Historically, Intel has used its manufacturing arm solely to make its own chips for PCs and servers. Now, the company wants to make chips for others, as well.
Intel is investing more than $100 billion in the U.S. over the next five years to expand its chipmaking capacity, plus another 50 billion euros allocated for Europe. Government subsidies, including grants and loans through the U.S. CHIPS and Science Act, will fund some of the expansions, and Intel's capital spending is at an elevated level as it grows its manufacturing footprint.
Source Fool.com
Intel Corp. Stock
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