[New York = E-Daily Seong Joowon Correspondent] Intel is raising $20 billion (approximately 28.28 trillion won) by increasing the size of its rights offering by more than one-third compared to its initial plan. This move is seen as a sign that demand for investment in the artificial intelligence (AI) semiconductor supply chain remains strong.

According to Bloomberg, Reuters, The Wall Street Journal (WSJ), CNBC, and others on the 11th (local time), Intel announced that day it had expanded the size of its common stock offering (public offering) from the initial $15 billion (approximately 21.21 trillion won) to $20 billion. The offering price was set at $95 per share. This marks a significant increase in the target amount just one day after the company first unveiled its $15 billion capital increase plan on the 10th.
Bloomberg reported, citing sources, that demand for this offering exceeded $100 billion (approximately 141.4 trillion won). The offering price represents a 6.5% discount to the closing price on the 7th. Intel’s stock price fell by more than 4% on the 10th and was down an additional 0.5% or so before the regular trading session opened on the 11th.
The reason Intel increased the size of its fundraising is the growing demand for semiconductors driven by the expansion of AI data centers. During its earnings announcement last month, Intel raised its capital expenditure (Capex) forecast for this year from $18 billion to $20 billion. According to Reuters, analysts say that increased investment was inevitable as demand for central processing units (CPUs) has surpassed Intel’s production capacity due to the proliferation of Agent AI. CNBC reported that the proceeds from the offering will be used for general working capital and capital expenditures, with net proceeds expected to total $19.7 billion. The transaction is set to close on the 12th, and the underwriting syndicate’s agreement includes a “greenshoe” option allowing them to purchase an additional $2.25 billion worth of shares within 30 days.
Intel is accelerating its expansion of facilities—including advanced packaging—as it challenges the foundry (semiconductor contract manufacturing) market, which has long been dominated by Taiwan’s TSMC. According to Reuters, Intel has decided to begin mass production of its 14A process in 2028, a move that contrasts with its previous warning that it might abandon the technology if it failed to secure major external customers. Reuters reports that expectations for securing additional customers have grown, as Tesla has already been secured as a 14A process customer and President Donald Trump mentioned that Apple would produce processors at Intel. However, neither company has officially confirmed this.
Market observers suggest that the sharp rise in Intel’s stock price supported this decision to raise capital. Russ Mold, an investment director at AJ Bell, told Reuters, “It is entirely rational for a capital-intensive company—which had undermined its own financial structure and business prospects by focusing on financial maneuvers such as the $82 billion share buyback in the 2010s—to raise funds now that its stock price has quintupled since last August.”
Intel’s latest capital raise aligns with the trend of large-scale fundraising by semiconductor and big tech companies, fueled by the boom in AI infrastructure investment. According to Bloomberg, Alphabet is in the process of raising up to $85 billion in equity financing, and Oracle also has plans for a $20 billion at-the-market (ATM) capital raise. Among domestic companies, SK hynix(000660)previously issued American Depositary Receipts (ADRs) worth $26.5 billion, setting the record for the largest-ever listing by a foreign company on the U.S. stock market, while China’s Changxin Memory (CXMT) also rose to the top spot in market capitalization among mainland Chinese listed companies last month with an initial public offering (IPO) worth approximately $9.9 billion.
Intel is seeking a turnaround by leveraging government and industry support, including a 10% equity investment from the U.S. government. In an interview with CNBC, Intel Chief Financial Officer (CFO) David Zinsner stated that most of this expanded capital expenditure will be used to build factory facilities, and he expects investment to increase to a “meaningful level” by 2027.