On August 18 (U.S. time), Intel and Japan's SoftBank Group announced a definitive agreement under which SoftBank will purchase $2 billion worth of Intel common stock at $23 per share. The transaction, subject to customary closing conditions, will make SoftBank Intel's fifth-largest shareholder, according to FactSet. News of the deal pushed Intel shares up nearly 6% in after-hours trading to $25.
Intel CEO Lip-Bu Tan welcomed the investment, saying, "We are very pleased to deepen our relationship with SoftBank, a company that is at the forefront of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership." SoftBank Chairman and CEO Masayoshi Son called semiconductors "the foundation of every industry," adding that the deal reflects confidence in the expansion of advanced semiconductor manufacturing in the United States, with Intel playing a "critical role."
The investment comes at a crucial moment for Intel, which has struggled to capitalize on the AI boom while pouring billions into its contract foundry business without securing major customers. Although $2 billion is modest compared with the $20–30 billion typically needed to build a leading-edge fab, analysts view the deal as both a financial lifeline and a strategic partnership—particularly given SoftBank's ownership of Arm, the world's largest semiconductor IP provider, and its growing role in AI infrastructure investments.
Meanwhile, Bloomberg reported that the Trump administration is considering converting part of the $10.9 billion in CHIPS Act subsidies earmarked for Intel into equity, potentially acquiring a 10% stake worth about $10.5 billion. If completed, the U.S. government would become Intel's largest shareholder.
Together, the potential dual backing from SoftBank and Washington underscores Intel's central role in America's semiconductor strategy. For Intel, these moves provide not just capital but also political and industry validation as it races to regain ground against TSMC in advanced manufacturing and expand its foundry services to Arm and other non-x86 customers.
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