Intel announced a proposed $15 billion common stock offering to fund foundry and manufacturing buildout as artificial intelligence demand accelerates demand for semiconductor capacity.
The chipmaker said the proceeds will support general corporate purposes including capital expenditure tied to foundry growth. Intel has been investing heavily in manufacturing infrastructure as major technology companies race to secure chip supply for AI systems and data center buildout.
Technology companies have spent trillions of dollars over the past two years expanding AI infrastructure, from semiconductor manufacturing to data center construction. Intel competes with Taiwan Semiconductor Manufacturing Company and Samsung in the foundry segment, where it offers contract manufacturing to customers developing their own chip designs.
Intel's foundry business is relatively young; the company started opening its manufacturing capacity to external customers in 2022 as it pursued a strategy shift toward becoming a broader chipmaker rather than designing chips exclusively for its own use. The company has won customers including Qualcomm and Amazon Web Services for various projects, though it trails TSMC significantly in foundry revenue and market share.
The $15 billion offering comes as Intel reported $12.9 billion in capital expenditure in its 2025 fiscal year. The company is building new fabrication plants in the United States and internationally to expand its production footprint for both its own designs and foundry work. Intel's domestic manufacturing expansion has also benefited from subsidies under the CHIPS and Science Act, which allocated $39 billion to U.S. semiconductor manufacturing.
Intel's stock has faced pressure in 2026 amid competitive challenges and concerns about execution. The offering will dilute existing shareholders unless Intel deploys the capital in ways that generate returns exceeding its cost of capital. Intel's ability to win additional foundry customers and reach profitability in that segment will determine whether the manufacturing expansion justifies the capital raise.
Intel's foundry revenue in coming quarters will show whether customer demand justifies the scale of the $15 billion investment.
