Intel has raised $20 billion through an enlarged share offering as the US chipmaker seeks to finance a costly expansion of its contract manufacturing business and take advantage of a sharp recovery in its stock price.
The company priced the offering at $95 per share, representing a 2.6% discount to its previous closing price. Intel had initially planned to raise $15 billion through the sale before increasing its target.
The fundraising comes as Intel invests heavily in new manufacturing facilities and advanced chip packaging as it attempts to compete with Taiwan Semiconductor Manufacturing Co. in the global contract chip market.
Intel shares have almost tripled so far this year, significantly outperforming major rivals such as AMD and Nvidia. The Philadelphia Semiconductor Index has gained about 75% over the same period.
The strong performance of Intel stock had increased expectations that the company would use the higher share price to raise funds for its expansion programme.
Russ Mould, investment director at AJ Bell, said raising capital made sense for Intel given the large amount of money required to rebuild its manufacturing capabilities. He also pointed to the company’s heavy share buybacks during the 2010s, which totalled about $82 billion.
Intel has been increasing investment as demand for computing power grows with the expansion of artificial intelligence applications. In July, the company raised its capital spending forecast for 2026 to $20 billion from $18 billion.
The company is also pushing ahead with its next-generation 14A manufacturing process, targeting high-volume production in 2028. Intel had previously warned that development of the technology could be halted if it failed to secure a major outside customer.
Its foundry business has secured Tesla as a customer for 14A technology. Expectations for another major customer increased after US President Donald Trump said Apple would manufacture processors with Intel, although neither Apple nor Intel has publicly confirmed such an agreement.
Intel is also expanding its manufacturing operations in Ireland. Last month, the company announced a €5 billion investment to upgrade and expand its facility in Leixlip, County Kildare. The project represents more than a quarter of Intel’s planned capital spending for 2026 and is expected to strengthen the site’s advanced manufacturing capabilities.
The new funds will give Intel additional financial resources as it attempts to transform its manufacturing operations and build a larger position in the contract chip market.
JPMorgan Securities, Goldman Sachs, Morgan Stanley and Citigroup Global Markets are acting as joint book-running managers for the share offering.
