SoftBank has agreed to inject $2 billion into Intel, in a bid to strengthen the U.S. semiconductor industry and revive the chipmaker’s competitiveness.
The Japanese group, SoftBank will purchase Intel common stock at $23 per share, giving it close to a 2% stake and making it one of Intel’s top shareholders.
The announcement, made after U.S. markets closed on Monday, sent Intel shares up more than 5% in after-hours trading, while SoftBank’s stock slipped over 5% in Tokyo.
Masayoshi Son, chairman and CEO of SoftBank, said, “Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.”
The investment lands at a challenging moment for Intel. Under new CEO Lip-Bu Tan, the company has been cutting costs and narrowing focus. It shut down its automotive chip division earlier this year, slashed between 15% and 20% of its foundry workforce, and doubled down on its client and data centre chip portfolio, where it still lags behind rivals Nvidia and AMD.
Tan, who has been navigating both corporate restructuring and political issues, welcomed SoftBank’s support. “We are very pleased to deepen our relationship with SoftBank, a company that’s at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership. Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment.”
Beyond chips, SoftBank’s CEO Son has been positioning the group as a key player in the next wave of artificial intelligence infrastructure. Earlier this year, SoftBank acquired Foxconn’s Lordstown, Ohio factory, which will be repurposed to manufacture AI data centre equipment.
The site forms part of the $500 billion Stargate project, a venture involving SoftBank, Oracle and OpenAI, aimed at building large-scale AI server capacity in the United States.
Meanwhile, U.S. politics are heavy over the semiconductor sector. The Trump administration has floated the idea of converting CHIPS Act funds into equity, potentially giving Washington as much as a 10% stake in Intel.
The White House has also threatened new tariffs on imported chips in a bid to strengthen domestic production and cut reliance on Asian giants like TSMC and Samsung.
