Intel Raises $20 Bn In First Share Sale Since 1971 To Fund Chipmaking Push

Intel has raised $20 billion through an upsized share offering as the chipmaker looks to fund the costly expansion of its contract manufacturing business, according to a Reuters report. The fundraising comes after a sharp rise in Intel’s stock price, giving the company an opportunity to raise fresh capital for its manufacturing ambitions.

Intel priced the offering at $95 per share, a 2.6% discount to its previous closing price. The company had announced on Monday that it aimed to raise $15 billion through the share sale. Bloomberg first reported that the offering had been increased to $20 billion.

The fundraising marks Intel’s first public share sale since it listed in 1971 and comes as the company invests heavily to rebuild its position in the global chip industry.

Intel Ramps Up Foundry Investment

Intel is spending heavily on new manufacturing facilities and advanced packaging capabilities as it tries to compete with Taiwan Semiconductor Manufacturing Company (TSMC) in contract chip manufacturing.

The company has also raised its capital expenditure forecast for 2026 to $20 billion from $18 billion. Strong demand for central processing units (CPUs), driven in part by the shift towards AI agents, has pushed Intel to increase its investment plans.

Intel has committed to high-volume production using its 14A manufacturing process in 2028. The company had earlier warned that the technology could be shelved if it failed to secure a major external customer.

New Customers Boost Intel’s Foundry Push

Intel’s foundry business has secured Tesla as a customer for its 14A process. Optimism about another major customer increased after US President Donald Trump said Apple would work with Intel to manufacture chips, although neither company has confirmed the arrangement.

The chipmaker is also expanding its manufacturing footprint overseas. Last month, Intel announced a €5-billion ($5.77-billion) investment to upgrade and expand its chip manufacturing operations in Ireland. The project accounts for more than 25% of the company’s planned 2026 capital spending.

Intel’s share price has nearly tripled this year, outperforming rivals AMD and Nvidia as well as the Philadelphia Semiconductor Index. The strong stock performance has increased expectations that the company could use its higher valuation to raise capital for its expansion plans.