Intel Raises $20 Billion to Expand Chip Manufacturing

Intel raised US$20 billion through an upsized share offering on Tuesday to fund the expansion of its chip contract manufacturing business. The offering was priced at US$95 per share, representing a 2.6 per cent discount from the previous close and exceeding the company's initial target of US$15 billion.

Intel is utilizing the capital to increase its annual capital expenditure forecast to US$20 billion, driven by AI-related demand for central processing units. The company is investing in new facilities and advanced packaging to challenge industry leader TSMC, which includes a US$5.77-billion investment to expand manufacturing operations in Ireland.

As part of its growth in the contract manufacturing space, the company has secured Tesla as a customer for its 14A manufacturing process. While President Donald Trump stated that Apple would manufacture processors with Intel, reports of a formal partnership with Apple remain unconfirmed.