SoftBank Pours $2 Billion into Intel

The Japanese corporation SoftBank has revealed a $2 billion investment in Intel, highlighting a major step towards enhancing technology and semiconductor capabilities in the United States.

The agreement, which entails SoftBank buying Intel common stock, was announced on Monday after market hours. SoftBank will purchase shares at a rate of $23 each. Following the announcement, Intel’s stock, which had closed at $23.66, experienced a rise of over 5% in after-hours trading.

Masayoshi Son, the Chairman and CEO of SoftBank Group, remarked that the “strategic investment emphasizes our belief that advanced semiconductor manufacturing and supply will see significant growth in the United States, with Intel being a crucial player.”

This investment reinforces Intel’s position, particularly as it has recently faced challenges from competitors like Nvidia. Furthermore, it reflects SoftBank’s intensified focus on the U.S. market, especially concerning AI chips. SoftBank has also recently acquired a factory in Lordstown, Ohio, formerly owned by Foxconn, to support its ambitions for building AI data centers.

With newly appointed CEO Lip-Bu Tan at the helm, Intel is undergoing a restructuring designed to streamline its semiconductor operations while concentrating on its main client and data center sectors. Earlier this summer, Intel shut down its automotive architecture division and reduced its workforce, with plans to cut the Intel Foundry division staff by 15% to 20%.

In the past few weeks, Tan has encountered political hurdles, including calls from President Donald Trump for his resignation over alleged conflicts of interest—claims that are unverified—amid discussions regarding the administration potentially acquiring a stake in Intel.

The SoftBank-Intel announcement comes shortly after the Trump administration threatened new tariffs on imported semiconductor chips in an effort to boost domestic production.