Aug 10 (Reuters) - Intel on Monday said it is planning to raise $15 billion through a share sale, as it looks to fund the costly build-out of its chip contract manufacturing business by cashing in on a stock surge fueled 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 chip manufacturing.
Its shares fell more than 3% in premarket
trading, likely on concerns about shareholder dilution from the stock sale. The stock has more than doubled this year, outperforming rivals.
The shift toward AI agents has powered demand for central processing units, with Intel executives saying that orders have outstripped the company's manufacturing capacity.
This booming demand led the chipmaker to raise its capital expenditure forecast for this year from $18 billion to $20 billion in July.
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.
Its foundry unit has won Tesla as a 14A customer and optimism for another marquee client grew after U.S. President Donald Trump said Apple would make processors with Intel, though neither company confirmed it.
Intel plans to give underwriters a 30-day option to buy up to $2.25 billion worth of additional shares at the offer price, minus discounts.
JPMorgan Securities, Goldman Sachs, Morgan Stanley and Citigroup Global Markets are acting as joint book-running managers.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Joyjeet Das and Arun Koyyur)
