SoftBank bets on Intel with a $2 billion strategic investment
The operation represents a 2% stake and was presented as a strategic bet on the expansion of advanced chip manufacturing in the United States.
The Softbank Group logo
Japanese conglomerate SoftBank agreed to invest $2 billion in Intel, acquiring common shares of the U.S. semiconductor maker for $23 each. The announcement came Monday after the markets closed and triggered a rise of more than 5% in subsequent trading.
The deal, which represents about 2% stake in Intel, was presented as a strategic bet on the expansion of advanced chip manufacturing in U.S. territory. For the White House, the announcement comes at a key moment: the Trump administration has put new tariffs on imported chips. It is even evaluating a direct investment in Intel to strengthen domestic production.
An endorsement in the midst of Intel's restructuring
Intel is going through a period of profound changes under the leadership of its new CEO, Lip-Bu Tan, who took over in March. The company has downsized non-strategic divisions, cut staff, and slowed construction of new factories in Ohio because of financial difficulties.
Tan recently warned that the company could pull out of next-generation chip manufacturing if it fails to secure large customers, which would deal a direct blow to U.S. plans to reduce reliance on Asia for semiconductor supplies.
SoftBank's investment relieves immediate pressure and sends a signal of confidence in Intel's ability to reposition itself in the competitive market dominated by Nvidia, Apple and Qualcomm.
Political tensions surrounding the tech giant
Under the 2022 CHIPS and Science Act, the company has already received about $7.9 billion in federal subsidies, but its financial problems have complicated progress, according to Financial Times. SoftBank's entry is being interpreted as a move that could facilitate the administration's plans to strengthen domestic production and reduce the influence of foreign competitors.
SoftBank and its bet on AI in the U.S.
The investment also confirms the Japanese group's renewed interest in the U.S. market. In recent months, SoftBank acquired a plant in Ohio owned by Foxconn with plans to allocate it to artificial intelligence data centers.
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