Intel has secured a $2 billion investment from Japan’s SoftBank, as the US government weighs taking a major stake in the chipmaker
New York
Intel has gained a significant lifeline with a $2 billion (£1.5bn) investment from Japan’s SoftBank, amid speculation that the US government may also acquire a sizeable stake in the struggling chipmaker.
SoftBank confirmed the deal on Tuesday, which will give it around a 2% holding in Intel. Masayoshi Son, SoftBank’s chief executive, called Intel a “trusted leader in innovation,” adding that the investment reflects confidence in the future of US semiconductor manufacturing.
Intel’s New York-listed shares rose over 5% in after-hours trading following the announcement, while SoftBank’s Tokyo-listed shares dipped about 4%. Intel is currently valued at more than $100 billion. Bloomberg has reported that Washington is considering a stake of up to 10%, which would make the US government Intel’s largest shareholder, surpassing Vanguard.
Intel’s new chief executive, Lip-Bu Tan, who took charge four months ago, is leading efforts to revive the company after years of losses and declining competitiveness. Tan said the partnership with SoftBank strengthens Intel’s position in advanced technology and manufacturing. Despite initial criticism from Donald Trump, who questioned his ties to China, Tan recently earned praise from the US president after a meeting in Washington.
If confirmed, a 10% US stake would underline the administration’s determination to safeguard critical industries. Trump has already threatened tariffs of up to 100% on imported chips, a move that could benefit Intel. Recent measures also include a 15% levy on Chinese AI chip sales by Nvidia and AMD, and a $400 million Pentagon investment in MP Materials.
For SoftBank, the deal boosts its US presence as it aligns with Japan’s push for closer economic ties with Washington.
