Intel Eyes $15 Billion Share Sale as Turnaround Gains Momentum
SAN FRANCISCO — Intel announced Monday it plans to raise $15 billion through a share sale to fund the costly expansion of its chip contract manufacturing business, capitalizing on a stock surge driven by its turnaround efforts.
Once a dominant force in the global chip industry, Intel is investing heavily in new facilities and advanced packaging capabilities as it seeks to challenge industry leaders such as TSMC in contract manufacturing. Its shares have more than doubled this year, though they fell more than 3 percent in premarket trading following the announcement, likely on concerns about shareholder dilution.
Demand for central processing units has been powered by a shift toward new computing technologies, with Intel executives saying orders have outstripped manufacturing capacity. The company raised its capital expenditure forecast for this year from $18 billion to $20 billion in July.
Intel has committed to high-volume production of chips using its 14A manufacturing process in 2028. Its foundry unit has won Tesla as a customer for that process, and optimism for another marquee client grew after President Donald Trump said Apple would make processors with Intel, though neither company has confirmed it.
Intel plans to give underwriters a 30-day option to buy up to $2.25 billion worth of additional shares. JPMorgan Securities, Goldman Sachs, Morgan Stanley, and Citigroup Global Markets are acting as joint book-running managers.
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