Intel Corporation (NASDAQ:INTC) intends to use the proceeds raised from the Mobileye initial public offering (IPO) towards funding more chip plants, according to chief executive Pat Gelsinger.
Gelsinger said in a conference call overnight that the company will retain a majority stake in the self-driving car subsidiary and that Intel will receive a “majority of the proceeds” from the IPO.
This will help with the group's plans for an “aggressive buildout of plants”.
Intel reportedly plans to build two new sites, one in Arizona in the US and one in Europe.
Chip shortages have affected several companies and industries this year, with electronics companies such as Sony (NYSE:SNE) and Apple and car makers from Tesla to Volkswagen having to slow or suspend production as a result.
READ: Intel to float self-driving arm in 2022
Intel had announced on Monday that it intends to float its self-driving arm in 2022 in New York.
Mobileye was bought by Intel in 2017 for US$15bn, with it now reportedly worth more than three times that much.