Intel Raises $15B in Stock Sale to Expand Foundry Capacity

Intel has officially launched a $15 billion underwritten public offering of common stock to fund its capital-intensive foundry expansion. The share sale will dilute existing shareholders but provides the company with fresh capital without taking on debt or seeking outside investors.

The offering is being managed by a group of leading investment banks, including JPMorgan, Goldman Sachs, Morgan Stanley, and Citigroup. Underwriters have a 30-day option to buy an additional $2.25 billion worth of shares at the public offering price, which would bring the total to $17.25 billion.

Intel attributes the need for capital to sustained demand from customers. The company says clients continue to signal strong momentum, fueled by unprecedented investment in AI compute. Growth areas such as physical AI, purpose-built silicon, advanced packaging, and external wafers represent significant opportunities for Intel's business.

Semiconductor manufacturing is among the most capital-intensive industries, requiring tens of billions of dollars to maintain leading-edge processes. According to Intel, external customers are eager to use its foundry services, including silicon production and advanced packaging, in volumes that exceed current capacity. The company is expanding its manufacturing sites to meet this demand.