Intel announced today that it will offer a $20 billion underwritten public offering of common stock to fund its capital‑intensive foundry expansion, diluting shareholders. The move aligns with CEO Lip‑Bu Tan’s earlier statement that significant manufacturing investment would only proceed if customer demand is evident.

The deal is backed by a consortium of elite banks—JPMorgan, Goldman Sachs, Morgan Stanley and Citigroup—as joint book‑running managers. Underwriters have a 30‑day option to buy an extra 31,578,947 shares, adding about $3 billion and raising the total to roughly $23 billion. These banks are recognized for their expertise in large‑scale capital markets financing.

Intel plans to issue about 210.5 million shares at $95 each, with the optional purchase adding 31.6 million shares; this reflects strong investor demand for AI compute and growth in advanced packaging and external wafer services. The strong demand also indicates that customers are seeking higher‑volume production and advanced packaging solutions beyond Intel’s current capabilities.

The offering amounts to roughly a 5 % dilution of Intel’s equity, mirroring the post‑announcement stock decline, and will fund further foundry investments without debt or external financing. This move underscores Intel’s commitment to expanding its manufacturing footprint globally.