Japan’s SoftBank has agreed to invest $2 billion in Intel, the troubled US chipmaker, as the Trump administration considers taking its own stake in the company, the Financial Times reports.
Under the deal, SoftBank will purchase $2 billion worth of Intel common stock directly from the company at $23 per share, subject to the usual closing conditions. The investment represents roughly a 2 percent stake in Intel.
SoftBank Chair and CEO Masayoshi Son said the move underscores the company’s “commitment to advancing US technology and manufacturing leadership.” Intel CEO Lip-Bu Tan, who took over in March, described the investment as a vote of confidence, noting his decades-long relationship with Son. Following the announcement, Intel shares rose about 5 percent in after-hours trading.
Tan has faced a turbulent few weeks with the Trump administration. President Trump initially called for his resignation over security concerns but later agreed to meet with Tan to discuss options for Intel. The US government has been exploring its own direct stake in the chipmaker, which has already received roughly $7.9 billion in manufacturing subsidies under the 2022 Chips Act. News of potential government involvement has helped push Intel’s stock up about 12 percent over the past week.
Tan has warned that Intel could withdraw from the most advanced chip manufacturing in the coming years if it cannot secure major customers, a move that would challenge US efforts to bring semiconductor production back onshore. He has also slowed construction on Intel’s new Ohio factories due to financial constraints.
Under Tan’s predecessor, Pat Gelsinger, Intel attempted to reinvent its manufacturing business to build for external customers, but struggled to secure orders from major chip designers such as Nvidia, Apple, and Qualcomm. SoftBank had previously explored a collaboration with Intel to produce an AI chip, but talks fell through as the company entered cost-cutting measures.
SoftBank has increasingly played a role in major US technology investments, including the $500 billion Stargate initiative announced in January with OpenAI and Oracle, aimed at expanding AI infrastructure in the United States.
