Intel plans to raise $15 billion through a share sale to help finance the expansion of its contract manufacturing business. The chipmaker is investing heavily in new factories and advanced packaging technology. It aims to challenge Taiwan Semiconductor Manufacturing Co (TSMC) in the global contract chipmaking market. Intel shares fell more than 4% in early trading on Monday. Investors worried that the new shares could dilute existing holdings. The decline followed a strong run for Intel stock. Shares had nearly tripled this year by Friday’s close, outperforming AMD and Nvidia. The Philadelphia Semiconductor Index had gained nearly 75% over the same period. Oil Prices Crude holds above one-week high as US-Iran talks lose momentum Analysts said Intel’s strong stock performance had increased the likelihood of an equity raise. The company can use the higher share price to help fund its costly expansion plans. AI demand drives Intel investment The growing use of AI agents has increased demand for central processing units. Intel responded by raising its 2026 capital expenditure forecast from $18 billion to $20 billion in July. The company has also committed to high-volume production using its 14A manufacturing process in 2028. Intel had previously warned that it could shelve the technology without securing a major external customer. Intel’s foundry business has secured Tesla as a customer for its 14A process. Expectations of another major customer also rose after US President Donald Trump said Apple would manufacture processors with Intel. However, neither Apple nor Intel has confirmed the reported arrangement. Intel expands overseas manufacturing Last month, Intel announced a $5.77 billion investment to upgrade and expand its chipmaking operations in Ireland. The investment represents more than 25% of Intel’s planned capital spending for 2026. The company is seeking to strengthen its manufacturing network as demand for advanced chips grows. Intel said underwriters would have a 30-day option to purchase up to $2.25 billion of additional shares at the offering price, minus discounts. JPMorgan Securities, Goldman Sachs, Morgan Stanley and Citigroup Global Markets will serve as joint book-running managers for the offering. The share sale comes as Intel attempts to transform its foundry business and compete more directly with TSMC in the increasingly important contract manufacturing market Post navigation AI boom Apple tests Chinese memory chips to ease supply shortage
