SoftBank invests $2 billion in Intel
Japanese tech conglomerate SoftBank Group has agreed to invest $2 billion in Intel, a move framed as a strategic bet on advanced semiconductor manufacturing in the United States.
The deal, announced Monday after U.S. markets closed, will see SoftBank purchase Intel common stock at $23 per share, slightly below Intel’s closing price of $23.66. The news sent Intel shares surging more than 5% in after-hours trading, highlighting investor optimism around the partnership.
SoftBank Chairman and CEO Masayoshi Son said the investment underscores his company’s conviction that the U.S. will remain central to the future of chipmaking.
“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,” Son said.
Boost for Intel Amid Restructuring
For Intel, the deal offers much-needed validation at a pivotal moment. Once the undisputed leader in chip design, Intel has in recent years been outshined by rivals such as Nvidia, whose dominance in AI processors has transformed the industry.
Under new CEO Lip-Bu Tan, Intel is undergoing a sweeping restructuring. The company has trimmed down non-core businesses, shuttering its automotive architecture unit earlier this summer and announcing workforce reductions of up to 20% in its Foundry Services division. Tan has pledged to refocus Intel’s resources on its client and data center portfolio, aiming to restore competitiveness in critical markets.
SoftBank’s Renewed U.S. Push
The investment also reflects SoftBank’s renewed focus on the American semiconductor landscape, particularly around AI chips and infrastructure. Earlier this year, the firm acquired a Foxconn-owned factory in Lordstown, Ohio, with plans to convert it into AI-powered data centers—an expansion that dovetails with Intel’s ambitions in the sector.
Politics and Policy Pressure
The Intel-SoftBank deal also lands in the middle of a fraught political climate. President Donald Trump has publicly called for Tan’s resignation over alleged conflicts of interest, though the claims remain unsubstantiated. Reports have also surfaced that the Trump administration considered taking a direct stake in Intel as part of efforts to secure the U.S. semiconductor supply chain.
Adding further pressure, the administration recently threatened new tariffs on imported chips, intensifying efforts to boost domestic production. In that context, SoftBank’s sizable investment signals international confidence in Washington’s strategy to shore up the U.S. semiconductor ecosystem.
Looking Ahead
The $2 billion cash injection provides Intel both capital and credibility as it navigates an industry in flux. With demand for AI hardware skyrocketing and governments prioritizing domestic chip production, Intel’s ability to execute on its turnaround plan may determine not only its future, but also the resilience of America’s technology supply chain.
