Intel will use the $20 billion equity raise to strengthen its balance sheet and fund an expensive expansion of its contract chip manufacturing operations.
Intel has raised $20 billion through an enlarged share offering as the chipmaker looks to strengthen its balance sheet and finance the expansion of its contract manufacturing business.
The company sold the shares at $95 each, representing a 2.6 per cent discount to its previous closing price. Intel had initially planned to raise $15 billion through the offering but increased the size of the sale amid strong investor interest.
The fundraising comes as Intel accelerates investments in advanced manufacturing facilities and chip packaging in an effort to compete with foundry leader Taiwan Semiconductor Manufacturing Company (TSMC).
Intel’s stock has almost tripled since the beginning of the year, outperforming major semiconductor peers including Advanced Micro Devices (AMD) and Nvidia. The sharp rise in its share price had prompted analysts to expect that the company could tap equity markets to finance its expansion.
The company is increasing spending as demand for processors used in AI infrastructure grows. Intel raised its 2026 capital expenditure forecast to $20 billion from $18 billion in July.
Intel has also committed to high-volume production using its 14A process in 2028. The company had previously indicated that the technology could be reconsidered without a major external customer. Its foundry business has since secured Tesla as a customer for 14A, while speculation has also grown around a potential relationship with Apple.
In Europe, Intel announced a €5 billion ($5.77 billion) investment last month to upgrade and expand its manufacturing operations in Ireland. The project represents more than a quarter of the company’s planned capital expenditure for 2026.
The latest equity raise provides Intel with additional capital as it attempts to build a competitive contract manufacturing business while meeting growing demand for AI-related computing infrastructure.
