Intel Plans $15 Billion Share Sale to Fund Chip Manufacturing Expansion

SANTA CLARA: Intel plans to raise $15 billion through a share sale as the U.S. chipmaker seeks to capitalize on a sharp recovery in its stock price and finance an ambitious expansion of its contract chip manufacturing business, according to Reuters.

The fundraising comes as Intel invests heavily in new manufacturing facilities and advanced packaging technologies in an effort to compete with industry leader TSMC in the global contract semiconductor market.

Bloomberg News, citing people familiar with the matter, reported that Intel could increase the offering to around $20 billion, with shares potentially priced at $95 or more. Investor demand was reportedly above $100 billion, although Reuters said it could not independently verify the report.

Intel shares fell more than 4% on Monday following news of the offering. Despite the decline, the company’s stock has nearly tripled this year, significantly outperforming rivals AMD and Nvidia as well as the broader Philadelphia Semiconductor Index.

The company is seeking to use its improved market valuation to strengthen its balance sheet and finance its manufacturing ambitions. Analysts have noted that Intel’s substantial share-price recovery has created a favorable opportunity for the company to raise equity capital.

The fundraising is particularly significant as demand for traditional central processing units increases alongside the rapid expansion of artificial intelligence applications. Intel raised its 2026 capital expenditure forecast from $18 billion to $20 billion in July, reflecting expectations for continued demand.

Intel has also committed to begin high-volume production using its 14A manufacturing process in 2028. Its foundry business has secured Tesla as a 14A customer, while expectations of a potential relationship with Apple have increased following comments by U.S. President Donald Trump, although neither Intel nor Apple has confirmed such an agreement.

Last month, Intel announced a €5 billion investment in Ireland to upgrade and expand its semiconductor manufacturing operations. The project represents more than one-quarter of the company’s planned capital expenditure for 2026.

Under the proposed offering, underwriters will have a 30-day option to purchase up to an additional $2.25 billion of Intel shares at the offering price, subject to discounts. JPMorgan Securities, Goldman Sachs, Morgan Stanley and Citigroup Global Markets are serving as joint book-running managers.

The share sale marks a significant step in Intel’s broader turnaround strategy, as the company seeks to restore its position as a major global semiconductor manufacturer while responding to growing demand for advanced computing and AI-related technologies.