Intel plans to raise $15 billion through a share sale, using a surge in its stock price to help finance the costly expansion of its chip contract manufacturing business as the company seeks to regain ground in an increasingly competitive global semiconductor industry.
The fundraising comes as Intel invests heavily in new manufacturing facilities and advanced packaging capabilities in an effort to challenge industry leader TSMC in contract chip manufacturing. Once a dominant force in the global chip industry, Intel has been undertaking an expensive turnaround centred on expanding its manufacturing capacity and developing advanced production technologies.
Bloomberg News, citing people familiar with the matter, reported that Intel was considering increasing the size of the offering to about $20 billion and could price the shares at $95 or more. That would represent a discount of about 2.6% to Monday’s closing price of $97.52. Bloomberg also reported that investor demand had exceeded $100 billion and that the deal could surpass $20 billion if an over-allotment option were exercised. Reuters could not immediately verify the report, and Intel could not be reached for comment outside regular business hours.
Intel shares fell more than 4% on Monday following the announcement. Despite the decline, the stock has nearly tripled so far this year, substantially outperforming rivals AMD and Nvidia as well as the Philadelphia Semiconductor Index, which has risen nearly 75%.
The sharp increase in Intel’s share price has encouraged analysts to expect the company to use its stronger market valuation to raise capital for its expansion. Russ Mould, investment director at AJ Bell, said the move made sense for a capital-intensive company seeking to rebuild its financial position after years of substantial share buybacks.
Intel’s investment needs have grown as demand for computing power increases. The shift towards AI agents has boosted demand for central processing units beyond the company’s existing manufacturing capacity, prompting Intel in July to raise its capital expenditure forecast for the year from $18 billion to $20 billion.
The company has also committed to high-volume production of chips using its 14A manufacturing process in 2028. Intel had previously warned that the technology could be shelved without a major external customer, making the development of a customer base for its foundry business an important element of its manufacturing strategy.
Intel’s foundry unit has won Tesla as a customer for its 14A process. Expectations of another major customer increased after US President Donald Trump said Apple would make processors with Intel, although neither company confirmed the arrangement.
The company is simultaneously expanding its manufacturing footprint beyond the United States. Last month, Intel announced a €5 billion ($5.77 billion) investment to upgrade and expand chip manufacturing in Ireland. The project represents more than 25% of Intel’s planned capital spending for 2026, highlighting the scale of resources being directed towards its manufacturing ambitions.
The planned share sale would provide additional funding as Intel attempts to transform its manufacturing business while responding to rapidly changing demand across the semiconductor industry. The company is seeking to use its recent stock-market gains to support investments that require substantial capital before the expanded manufacturing operations can generate returns.
Intel plans to give underwriters a 30-day option to purchase up to $2.25 billion of additional shares at the offering price, less discounts. JPMorgan Securities, Goldman Sachs, Morgan Stanley and Citigroup Global Markets are acting as joint book-running managers.
The fundraising represents a significant financial step in Intel’s effort to rebuild its manufacturing capabilities and compete more aggressively in contract chip production. With its stock having nearly tripled this year, the company is now seeking to convert renewed investor confidence into the capital needed to finance the next phase of its turnaround.
