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Intel Raises $20B for Chip Expansion
11 Aug
Summary
- Intel increased its stock offering to $20 billion.
- Proceeds will fund expansion of its chip contract manufacturing business.
- Tesla is a customer for Intel's 14A process node.
Intel announced on Tuesday that it has upsized its common stock offering to $20 billion. This move represents an increase from the $15 billion target initially revealed on Monday. The offering is slated to close on August 12, with expected net proceeds of approximately $19.7 billion after expenses.
These funds are designated for general corporate purposes, potentially including capital expenditures and working capital needs, to support Intel's strategic expansion in contract chip manufacturing. The company has been investing heavily to bolster this business segment, as demand for its central processing units has frequently outpaced its manufacturing capacity.
In July, Intel revised its 2026 capital expenditure target upwards to $20 billion from $18 billion. The company has committed to achieving high-volume production with its 14A process node by 2028. Notably, Tesla has already secured its place as a customer for this advanced process through Intel's foundry division.
Last month, Intel disclosed plans to invest €5 billion ($5.77 billion) in its Irish chip manufacturing operations. This investment is part of a broad capacity expansion effort, as the company's chief financial officer noted that supply could not keep pace with customer demand. Intel's share price has seen significant growth, up 175% year-to-date in 2026 and approximately fivefold compared to a year ago.
