By Anhata Rooprai <\/p>\n
Aug 10 (Reuters) – Intel said on Monday it was planning to raise $15 billion through a share sale, as it looks to fund the costly build-out \u200cof its chip contract manufacturing business by cashing in on a stock surge fueled \u200cby its turnaround efforts. <\/p>\n
Once a dominant force in the global chip industry, Intel is investing heavily in new facilities and \u200badvanced packaging capabilities as it seeks to challenge industry leaders such as TSMC in contract chip manufacturing. <\/p>\n
Its shares fell more than 4% in early trading. As of last close, the stock has nearly tripled this year, outperforming rivals AMD and Nvidia and the Philadelphia Semiconductor Index’s nearly 75% rise. <\/p>\n
Several analysts \u200chave said Intel’s surging share \u2060price has increased the chances of an equity raise to help fund its expansion plans. <\/p>\n
“As a capital-intensive business that went a long way to wrecking \u2060its own balance sheet and prospects by focusing on financial engineering rather than physical engineering, courtesy of $82 billion of share buybacks in the 2010s, it makes perfect sense for Intel to raise money, especially after \u200ba \u200bfive-fold increase in the stock price since last August,” \u200bsaid Russ Mould, investment director at \u200cAJ Bell. <\/p>\n
The shift toward AI<\/a> agents has powered demand for central processing units beyond Intel’s manufacturing capacity, prompting the chipmaker to raise its capital expenditure forecast for this year from $18 billion to $20 billion in July. <\/p>\n It also committed to high-volume production of chips using its 14A manufacturing process in 2028, after previously warning the technology could be shelved without a major external customer. <\/p>\n Its foundry unit \u200chas won Tesla<\/a> as a 14A customer and optimism \u200bfor another marquee client grew after U.S. President Donald Trump \u200bsaid Apple<\/a> would make processors with \u200bIntel, though neither company confirmed it. <\/p>\n Last month, Intel announced a 5 billion euro ($5.77 \u200cbillion) investment to upgrade and expand chip \u200bmanufacturing in Ireland, a \u200bproject that represents more than 25% of its planned 2026 capital spending. <\/p>\n Intel plans to give underwriters a 30-day option to buy up to $2.25 billion worth of additional shares at \u200bthe offer price, minus discounts. <\/p>\n JPMorgan Securities, \u200cGoldman Sachs, Morgan Stanley and Citigroup Global Markets are acting as joint book-running managers. <\/p>\n ($1 = \u200b0.8659 euros) <\/p>\n (Reporting by Anhata Rooprai in Bengaluru, additional reporting by Rashika Singh in \u200bBengaluru; Editing by Joyjeet Das and Arun Koyyur) <\/p>\n","protected":false},"excerpt":{"rendered":"By Anhata Rooprai Aug 10 (Reuters) – Intel said on Monday it was planning to raise $15 billion…\n","protected":false},"author":2,"featured_media":63613,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[4],"tags":[16083,8,12117,9,33259,27620,7],"class_list":["post-63612","post","type-post","status-publish","format-standard","has-post-thumbnail","category-top-stories","tag-contract-manufacturing","tag-headlines","tag-intel","tag-news","tag-share-buybacks","tag-stock-price","tag-top-stories"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@news\/117071908912960659","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/posts\/63612","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/comments?post=63612"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/posts\/63612\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/media\/63613"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/media?parent=63612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/categories?post=63612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/tags?post=63612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}