Intel announced on Monday its intention to raise approximately $15 billion through a share offering aimed at financing the expansion of its contract chip manufacturing operations. The move comes as the company seeks to capitalize on a significant rally in its stock price driven by efforts to revitalize its business.

Once a dominant player in the global semiconductor sector, Intel has been investing heavily in new manufacturing facilities and advanced packaging technologies. These initiatives are part of the company’s strategy to compete more directly with leading foundries such as Taiwan Semiconductor Manufacturing Company (TSMC). The planned share sale is intended to support these costly build-outs, which are critical to Intel’s goal of increasing its contract manufacturing capabilities.

Despite the announcement, Intel’s shares declined by over 4 percent in early trading on Monday. Nevertheless, the company’s stock has experienced a substantial increase this year, nearly tripling in value. This performance outpaces competitors Advanced Micro Devices (AMD) and Nvidia, as well as the Philadelphia Semiconductor Index, which has risen by nearly 75 percent during the same period.

Market analysts have noted that Intel’s recent stock price surge makes the timing favorable for an equity offering to fund its growth plans. The broader industry shift toward artificial intelligence applications has intensified demand for central processing units (CPUs), creating new opportunities that extend beyond Intel’s traditional manufacturing focus.

The company has not disclosed specific timing or details of the share sale, but the planned capital raise is viewed as a key step to underwrite its manufacturing expansion amid a rapidly evolving semiconductor landscape.