Intel is back in the big chip race: the company is preparing up to $20 billion

Intel is accelerating the expansion of its Fab 38 factory in Kiryat Gat and simultaneously preparing to raise $15-20 billion in new capital.

Intel has significantly accelerated its investment plans. The American company is resuming preparations for the expansion of its Fab 38 factory in Kiryat Gat, Israel.

In July 2025, Intel suspended part of the work, instructing contractor Hoffman Construction to complete only one of two planned cleanrooms. The first phase is now nearing completion, and the contractor has indicated 2026 as the project completion date. Simultaneously, Intel has opened a vacancy for a chief site planner for the Kiryat Gat facility, which may indicate preparations for the construction of a second cleanroom.

In parallel, Intel plans to raise $15 to $20 billion in new capital through a stock issuance. The company already has approximately $30 billion in cash. Intel CEO Lip-Bu Tan previously stated that he would approve a major expansion of Intel Foundry after securing contracts for 14A process technology manufacturing. The acceleration of construction and the search for enormous capital indicate Intel's possible offensive in the chip market.