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Intel to raise $15 billion via share sale to fund foundry expansion
The planned offering includes a 30-day underwriters option to buy up to $2.25 billion more shares, as Intel targets higher capex, including a rise in its 2024 forecast to $20 billion.
Intel is planning to raise $15 billion through a share sale to help finance the expensive build-out of its contract chip manufacturing business, after its stock surged on turnaround expectations, according to LiveMint citing Reuters coverage.
The company is investing in new facilities and advanced packaging capabilities to compete in foundry and contract manufacturing, with the stock down more than 4% in early trading at the time of the report, and nearly tripled year to date while the Philadelphia Semiconductor Index was up nearly 75%.
Analysts cited in the report say the rally has increased the odds of an equity raise to support expansion, while Intel is also adjusting plans for capital spending as demand for central processing units grows beyond its current manufacturing capacity.
Intel said it raised its capital expenditure forecast for this year from $18 billion to $20 billion in July, and it committed to high-volume production using its 14A process in 2028, after warning the work could be shelved without a major external customer. The report also notes Intel’s foundry unit has won Tesla as a 14A customer and references a planned 5 billion euro investment in Ireland that represents more than 25% of its planned 2026 capex, with underwriters set to offer the stock over an order period that includes a 30-day option to buy additional shares.