Intel is raising approximately $20 billion through a new stock offering as the chipmaker seeks additional capital to support its operations and investment plans.

The company priced 210.5 million new shares at $95 each, increasing the size of the offering from the previously announced $15 billion. Intel expects to receive about $19.7 billion in net proceeds, assuming the underwriters do not exercise their option to buy additional shares.

The deal is expected to close on August 12, subject to standard closing conditions.

Intel said the funds will be used for general corporate purposes, including potential capital expenditure and working capital. The company has not provided a detailed breakdown of how the money will be spent.

The fundraising comes as the semiconductor industry continues to require huge investments in advanced manufacturing, computing infrastructure and other technologies. The additional capital gives Intel more financial flexibility as it works to strengthen its business.

However, the stock sale will also dilute existing shareholders, because the newly issued shares will increase the total number of Intel shares in circulation. The dilution could become larger if underwriters exercise their option to purchase an additional 31.58 million shares.

Several major financial institutions, including J.P. Morgan, Goldman Sachs, Morgan Stanley and Citigroup, are leading the offering.

Intel, which trades on Nasdaq under the ticker INTC, designs and manufactures semiconductors used across computers, data centres and other technology products.

Bottom line: Intel's $20 billion capital raise gives the company significant new funding for investment and operations, but existing shareholders will face dilution as the number of outstanding shares increases.