SoftBank's $2 Billion Investment in Intel: A Strategic Move in the AI Chip Race

SoftBank makes $2B investment in Intel | TechCrunch

Japanese conglomerate SoftBank has agreed to make a $2 billion investment in Intel in a deal described as a commitment to advanced technology and semiconductors in the United States. The agreement, in which SoftBank will buy Intel common stock, was announced Monday after markets closed. SoftBank will pay $23 per share of Intel common stock. Shares of Intel, which closed at $23.66, popped more than 5% in after-hours trading. SoftBank Group Chairman and CEO Masayoshi Son said in a statement that the "strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role." The investment provides validation for Intel, which has been overshadowed in recent years by competitors like Nvidia. It also reflects SoftBank's renewed interest in the U.S., particularly around AI chips. SoftBank recently purchased a factory in Lordstown, Ohio, owned by Foxconn as part of a plan to build AI data centers. Intel, steered by new CEO Lip-Bu Tan, is in the midst of a restructuring that aims to streamline the semiconductor business and focus on its core client and data center portfolio. Earlier this summer, Intel shuttered its automotive architecture business and laid off most of its staff. It also announced plans to reduce its Intel Foundry division workforce between 15% and 20%. Tan has also had to navigate political landmines in recent weeks as President Donald Trump called for his resignation due to conflicts of interest -- an accusation that was made without evidence -- and his administration reportedly had discussions to take a stake in Intel. The SoftBank-Intel deal comes just days after the Trump administration threatened new tariffs on imported semiconductor chips as part of his strategy to boost domestic production.

SoftBank to buy $2 billion in Intel shares at $23 each -- firm still owns majority share of Arm

SoftBank Group late on Monday announced a plan to purchase $2 billion worth of Intel shares at $23 each, which will provide the troubled chipmaker much-needed cash. The companies inked a definitive securities purchase agreement, which sets the price of Intel stock (currently trading below its book value) at which the Japanese company will buy it. Softbank also still owns a majority share of Arm. Intel and SoftBank frame the deal as a way to 'deepen their commitment to investing in advanced technology and semiconductor innovation in the United States.' Given the context of Intel's recent struggles, this $2 billion share purchase is a way to pour some money into Intel's efforts to rebuild itself as a leading supplier of processors and a contract chipmaker that serves both internal and external needs for leading-edge semiconductor production. By modern foundry standards, $2 billion is not a large sum of money. Building a single leading-edge semiconductor production facility today typically costs between $20 billion and $30 billion, and in many cases even more, depending on planned production volumes, product mix, and equipment used. However, the investment does not seem to be entirely about money, even though $2 billion will be instrumental for Intel, which bleeds billions every quarter. To a large degree, this investment is a vote of confidence in the future of Intel's U.S.-based leading-edge semiconductor production and SoftBank's plan to play a bigger role in the ongoing AI revolution, which will require partnerships with many industry players. If Intel succeeds with its next-generation products and 18A as well as 14A process technologies, then SoftBank will get a partner with a huge potential, which will be important across multiple fronts, including access to advanced semiconductor production capacities (good news for Arm and Ampere that are controlled by SoftBank) as well as a leverage in negotiations with other partners. "Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation," Masayoshi Son, Chairman & CEO of SoftBank Group. "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." Additionally, SoftBank may consider an investment in Intel, as it represents undervalued infrastructure that could drive significant advancements in the high-tech sector and substantially increase its value. At $23 per share, Intel is trading below its book value with a market capitalization of around $103 billion. By contrast, the company's real estate and manufacturing assets cost $109 billion. So for SoftBank, this is both a financial opportunity (buying undervalued assets) and a strategic move (securing a stake in the perfectly set semiconductor production infrastructure needed to produce chips that support AI in one way or another). "We are very pleased to deepen our relationship with SoftBank, a company that is at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership," said Lip-Bu Tan, CEO of Intel. "Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment."

SoftBank's Son backs ally Tan with $2 billion Intel investment

TOKYO, Aug 19 (Reuters) - When Lip-Bu Tan stepped down from the SoftBank Group (9984.T), opens new tab board in 2022 at a time when the Japanese company was grappling with soured investments, his parting message offered advice on how Masayoshi Son's conglomerate could strengthen its business. Three years later, a resurgent SoftBank has made a show of support by taking a $2 billion stake in Intel (INTC.O), opens new tab as Tan, now the storied American company's CEO, seeks to turn around the embattled chipmaker. Tan took Intel's top job in March and is driving restructuring at the company, which lost out to Nvidia (NVDA.O), opens new tab in artificial intelligence chips and whose foundry business is struggling. "This is really a vote of confidence of Masa in the turnaround materialising over the coming years," said Rolf Bulk, an analyst at New Street Research. "For Intel, the investment makes it more likely that SoftBank could be a potential client to Intel in the future." The two men have a long-standing relationship. "Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment," Tan said in a statement. In addition to his time on SoftBank's board, Tan became chairman of chip startup SambaNova, which received backing from SoftBank's Vision Fund. "Masa is brilliant; he's a visionary. But he still needs people to provide safeguards, give him advice, and make him even more successful," Tan wrote in his statement on leaving the SoftBank board. Son, 68, is known as a savvy political operator, appearing publicly with U.S. President Donald Trump twice in the months following the presidential election. He has close relationships with leading tech entrepreneurs such as Jensen Huang, CEO of Nvidia, in which SoftBank has a stake. Last week Tan, 65, met with Trump, who days earlier had called on him to resign due to his ties to Chinese firms. Washington is in talks to take a 10% stake in Intel, Bloomberg has reported. "SoftBank's investment helps but it is not what is going to move the dial for Intel," said Amir Anvarzadeh of Asymmetric Advisors. "It's more to maintain this very good relationship he has with Trump," he said. BACK ON THE OFFENSIVE Son is making splashy investments again after some underperforming tech bets forced a period of retrenchment, with the conglomerate pursuing a $500 billion U.S. data centre venture with OpenAI, the maker of ChatGPT. SoftBank has acquired a former electric vehicle factory from Foxconn (2317.TW), opens new tab in Ohio as it looks to advance its Stargate data center project. Arm , which is controlled by SoftBank, plans to make its own chips, and the Japanese conglomerate also acquired chipmaker Graphcore last year. SoftBank's shares have been on a tear, boosted by positive sentiment around its AI investments. "The $2 billion investment should be viewed more as a strategic stake rather than a financial one," said Nori Chiou, investment director at White Oak Capital Partners. "In the world of cutting-edge semiconductor manufacturing, only capital commitments in the $30 billion-$40 billion range carry true commercial weight," he said. Industry experts say Tan still faces a mountain to climb to turn around Intel, which has suffered from years of management missteps. "It is Masa making a contrarian bet but one where I think the downside risk is fairly limited," said Bulk of New Street Research. Reporting by Sam Nussey and Anton Bridge in Tokyo and Fanny Potkin in Singapore; Editing by Muralikumar Anantharaman Our Standards: The Thomson Reuters Trust Principles., opens new tab

Intel gets $2 billion lifeline in the form of SoftBank equity investment

Aug 18 (Reuters) - Intel (INTC.O), opens new tab is getting a $2 billion capital injection from SoftBank Group (9984.T), opens new tab in a major boost of confidence for the troubled U.S. chipmaker that is in the middle of a turnaround effort. The equity investment, announced by the two companies on Monday, is a lifeline for the once-iconic U.S. chipmaker which has struggled to compete after years of management blunders that left it with virtually no foothold in the booming artificial intelligence chip industry. The deal follows media reports last week that the U.S. government may buy a stake in Intel, after a meeting between new CEO Lip-Bu Tan and President Donald Trump that was sparked by the President's demand for Tan's resignation over his ties to Chinese firms. SoftBank's decision to invest in Intel is not connected to Trump, a person familiar with the matter told Reuters. The White House did not immediately respond to a request for comment. The investment will make SoftBank a top-10 shareholder of Intel and add to the Japanese tech investor's ambitious bet on AI that includes the $500 billion Stargate U.S. data center project. "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," SoftBank CEO Masayoshi Son said in a statement. It will pay $23 per share for the Intel common stock. SoftBank would become the sixth largest investor in Intel, according to LSEG data. SoftBank's investment will come via a primary issuance of common stock by Intel, and, based on the U.S. company's market capitalisation at close of trading on Monday, represent an equity stake of just under 2%, an Intel spokesperson said. SoftBank's shares dropped more than 5% on Tuesday following the announcement, while Intel surged 5.6% in after-market hours trading. The Japanese company will only take an equity stake in Intel and will neither seek a board seat nor commit to buying Intel's chips, the person familiar with the matter said. Intel has struggled financially and recorded an annual loss of $18.8 billion in 2024, its first such loss since 1986. Bloomberg News reported earlier on Monday that the U.S. government is in talks to take a 10% stake in Intel. SoftBank declined to provide more details on the Intel investment when asked to comment by Reuters. The Intel funding is the latest in the Japanese company's run of mammoth investment announcements in 2025, which include committing $30 billion to ChatGPT maker OpenAI as well as leading the financing for Stargate. On Monday Taiwan's Foxconn (2317.TW), opens new tab said it plans to manufacture data centre equipment with SoftBank at the Taiwanese firm's former electric vehicle factory in Ohio as part of the Stargate project. Reporting by Jaspreet Singh in Bengaluru, Max Cherney in San Francisco and Anton Bridge in Tokyo; Additional reporting by Angela Christy in Bengaluru; Writing by Miyoung Kim; Editing by Alan Barona and Muralikumar Anantharaman Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Media & Telecom Max A. Cherney Thomson Reuters Max A. Cherney is a correspondent for Reuters based in San Francisco, where he reports on the semiconductor industry and artificial intelligence. He joined Reuters in 2023 and has previously worked for Barron's magazine and its sister publication, MarketWatch. Cherney graduated from Trent University with a degree in history.

SoftBank throws Intel its next-best lifeline

HONG KONG, Aug 19 (Reuters Breakingviews) - Finally, some good news for Intel's (INTC.O), opens new tab beleaguered new boss. Since taking over the struggling chipmaker in March, Lip-Bu Tan has faced U.S. President Donald Trump's demands to step down, a credit-rating downgrade, deteriorating finances and other setbacks as he pushes ahead with an ambitious turnaround. Securing a $2 billion investment from Japan's SoftBank Group (9984.T), opens new tab is a much-needed endorsement. As part of the deal, opens new tab, Intel will issue new shares at a small discount to the stock's last close, giving Masayoshi Son's group an equity stake of just under 2%. The cash injection pales next to the $16.5 billion of capital expenditures Intel is forecast to make this year, per Visible Alpha, but at the very least, it should help bolster confidence. As recently as last month, Tan warned that Intel may be forced to exit the contract manufacturing business, where it has fallen behind Taiwan Semiconductor Manufacturing (2330.TW), opens new tab and Samsung Electronics (005930.KS), opens new tab, if it does not find a significant customer for its next-generation 14A manufacturing process. If that was a cry for help, the message has been well received. In addition to SoftBank, Intel may soon welcome another major shareholder: the Trump administration is in discussions to take a 10% stake in the company, Bloomberg reported, opens new tab on Monday, citing sources familiar with the plan, in a move that potentially speeds up the near-$11 billion in government grants promised to Intel as part of the 2022 CHIPS and Science Act. Having both Trump, who appears to have backed off his calls for Tan's resignation, and Son onboard could help the Intel boss. The White House might be able to exert pressure to help the executive mend a rift with his board about whether to spin out its manufacturing unit, as reported, opens new tab by the Wall Street Journal. And Son's bets in artificial intelligence, including the $500 billion Stargate Project, an AI infrastructure joint venture with OpenAI, might turn into a lucrative opportunity for Intel down the line. The problem is, what Intel really needs is to revive sales now. That's unlikely to happen: SoftBank will neither seek a board seat nor commit to buying Intel's chips, according to Reuters, citing a source. Realistically, only a strategic investor committed to Intel's long-term technological progress can reverse its decline. That would require, say, an Nvidia (NVDA.O), opens new tab or AMD (AMD.O), opens new tab deciding they need to support alternative high-end chip manufacturers to TSMC. Until then, Tan will have to make do. Follow Robyn Mak on X, opens new tab. Editing by Antony Currie; Production by Aditya Srivastav * Suggested Topics: * Breakingviews Breakingviews Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time. Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors. Robyn Mak Thomson Reuters Robyn Mak joined Reuters Breakingviews in 2013. Previously, she was a Research Associate for the Global Policy Programs at the Asia Society in New York. She has also worked at the Carnegie Endowment for International Peace in Washington DC and interned at several consulting firms, including the Albright Stonebridge Group. She holds a masters degree in international economics and international relations from the Johns Hopkins School of Advanced International Studies and is a magna cum laude graduate of New York University.

Intel is getting a $2 billion investment from SoftBank

Intel and SoftBank announced on Monday that the Japanese conglomerate will make a $2 billion investment the embattled chipmaker Intel. SoftBank will pay $23 per share for Intel's common stock. Intel shares rose 4% in extended trading. The investment is a vote of confidence in Intel, which has not been able to take advantage of the AI boom in advanced semiconductors and has spent heavily to stand up a manufacturing business that has yet to secure a significant customer. "Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment," Intel CEO Lip-Bu Tan said in a statement. Intel shares lost 60% of their value last year, their worst performance in the company's more than half-century on the public market. The stock is up 18% in 2025 as of Monday's close. Lip-Bu Tan took over as Intel CEO in March after investors pressured the chipmaker over falling share prices. In recent days, Intel has been a topic of discussion in Washington, as the company is a critical U.S. supplier because it is the only American company capable of manufacturing the most advanced chips. However, Intel's business manufacturing chips for other companies, called its foundry business, has yet to secure a major customer, which would be a critical step towards stabilization and expansion. Last month, Intel said that it would wait to secure orders before it committed to certain further investment in its foundry. Last week, Tan met with President Donald Trump after the president had called for Tan's resignation. The U.S. government is considering taking a equity stake in Intel, according to reports. SoftBank has become an increasingly large player in the global chip and AI markets. In 2016, SoftBank acquired chip designer Arm in a deal worth about $32 billion at the time. Today the company is worth almost $150 billion. Arm-based chips are part of Nvidia's systems that go into data centers. And in March of this year, SoftBank announced plans to acquire another chip designer, Ampere Computing, for $6.5 billion. SoftBank was also part of President Donald Trump's Stargate announcement in January, along with OpenAI and Oracle. The three companies committed to invest an initial $100 billion and up to $500 billion over the next four years in the AI infrastructure project.Two months later, SoftBank led a $40 billion investment round into OpenAI, the largest private tech deal on record. "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," SoftBank CEO Masayoshi Son said in a statement.

Intel saved? Softbank is investing $2 billion in beleagured chipmaker - and the Trump administration may still take a stake too

After several recent turbulent exchanges between President Trump and Intel CEO Lip-Bu Tan, the US Government may be about to take a 10% stake in 10% in Intel Corp. The move would see the US Government become Intel's largest shareholder, and provide a significant boost to Intel's chip manufacturing, which has fallen behind competitors such as Nvidia and AMD. The Trump Administration isn't the only party looking for a cut of Intel, with SoftBank Group announcing a securities purchase agreement that would see SoftBank purchase $2 billion worth of Intel shares. While the plans are not yet concrete, there are rumblings (per Bloomberg) that as part of the Trump Administration's deal, some of Intel's grants under the 2022 U.S. CHIPS and Science Act could be converted into equity. Intel received $7.9 billion for domestic investment, and an additional $3 billion to boost manufacturing under the Biden-era legislation. However, there has been no official comment from the government on the potential deal with Intel. Trump recently demanded the "immediate resignation" of the Intel CEO, accusing Lip-Bu Tan of being "highly conflicted" due to his investments in Chinese companies. A later meeting between the two saw Intel's stock price jump by 7% after rumors of a potential deal emerged. The SoftBank deal saw Intel's stock price rise by several percentage points following its announcement. Intel's stock price has been slipping over the past several years after the chip manufacturer failed to capitalize on the AI demand for semiconductors, with former Intel CEO Pat Gelsinger being forced out by Intel's board after a loss of confidence. Masayoshi Son, Chairman & CEO of SoftBank, said, "Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. 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." Intel CEO Lip-Bu Tan also commented on the deal, stating, "We are very pleased to deepen our relationship with SoftBank, a company that's at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership. Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment."

Japan's SoftBank to buy $2 billion stake in chip maker Intel

The Japanese tech giant has been increasing its investments in the US since the beginning of US President Donald Trump's second term. Japanese technology giant SoftBank Group plans to take a $2 billion (€1.7bn) stake in computer chip maker Intel as it deepens its involvement in semiconductor manufacturing and other advanced technology in the United States, the companies said Monday. Shares in SoftBank fell 4% Tuesday in Tokyo following the announcement, which coincided with unconfirmed reports that President Donald Trump is considering having the US government buy a stake in the chip maker. Intel's rose 5.4% early Tuesday in pre-market trading. SoftBank invests in an array of companies that it sees as holding long-term potential and has been stepping up investments in the United States since Trump returned to the White House. In February, its chairman Masayoshi Son joined Trump, Sam Altman of OpenAI and Larry Ellison of Oracle in announcing a major investment of up to $500 billion (€428bn) to develop an artificial intelligence project called Stargate. SoftBank plans to buy $2 billion (€1.7bn) of Intel's common stock, paying $23 (€19.70) per share. That would be about a 2% stake. Intel's shares closed at $23.66 (€20.26) on Monday. "Semiconductors are the foundation of every industry, Son said in a statement. "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." Intel helped launch Silicon Valley but has fallen behind rivals like Nvidia Corp. and Advanced Micro Devices Inc. and is shedding thousands of workers and slashing costs under its new CEO, Lip-Bu Tan. Intel plans to end the year with 75,000 "core" workers excluding subsidiaries, through layoffs and attrition, down from 99,500 core employees at the end of 2024. The company previously announced a 15% workforce reduction.

SoftBank to take $2B stake in beleaguered chipmaker Intel - SiliconANGLE

SoftBank Group Corp. will make a $2 billion investment in Intel Corp., providing a boost to the embattled chipmaker amid ongoing discussions about a government intervention. Under the terms of the deal, SoftBank will buy $2 billion worth of Intel's stock at $23 per share, representing a slight discount on the company's Monday closing stock price of $23.66. That will give SoftBank around 87 million shares in the company, amounting to a 2% stake overall. As such, the Japanese firm will become Intel's sixth largest shareholder. Investors signaled their approval, as Intel's stock gained more than 4% on the news in after-hours trading, having fallen 3.7% during regular trading. The deal comes as officials in U.S. President Donald Trump's administration continue discussions over a plan that could see the government take a 10% stake in the company, as part of an effort to try and revive its fortunes and boost the country's domestic chip manufacturing industry. The additional investment from SoftBank will be helpful for Intel, but it still faces a struggle to acquire customers for its chip design and fabrication businesses and get them back on track. During its most recent financial report, Intel reported a net loss of $2.9 billion in the second quarter of fiscal 2025. At the time, the chipmaker said it's seeking larger commitments from customers in order to justify its plans to manufacture the latest generation of its artificial intelligence processors. SoftBank had promised in December to invest up to $100 billion in U.S. companies over the next four years, in a move that was seen by analysts as an attempt to build goodwill with Trump. As for the U.S. government's proposed 10% stake in Intel, the structure and terms of such an agreement have not yet been worked out, but Bloomberg reported today that one possible option is to convert some of the money that was earmarked for the company as part of the 2022 Chips and Science Act into an equity stake. That arrangement is thought to have been proposed by Commerce Secretary Howard Lutnick, who is keen for the U.S. to get a better return on investment on the companies it has funded via the act. Under previous President Joe Biden's administration, Intel emerged as the biggest beneficiary of the Chips Act. The government announced it would receive almost $8 billion in grants for building new and expanded chip fabrication plants in Ohio and other parts of the U.S. The money was set to be paid after the chipmaker met specified milestones, but Lutnick wants to change the terms and convert those funds into an equity stake in the company. Talks between Intel and the White House intensified just days after Trump posted a demand for the company's chief executive officer Lip-Bu Tan to resign, citing a conflict of interest regarding his investments in Chinese chipmakers. Last week, Tan paid a visit to Trump at the White House to resolve the matter, and it's there that the idea of a government investment was first mooted. It's thought that White House officials were upset by Tan's announcement earlier this year that he will slow down the construction of its Ohio-based plant. The exact value of the government's proposed 10% stake in Intel has not yet been determined, but the company has a market capitalization of around $10 billion. If the government does proceed with the plan, it would become one of Intel's largest shareholders. As with the Biden administration, Trump has made domestic semiconductor manufacturing a priority, and his officials believe that Intel is the only viable contender to Taiwan Semiconductor Manufacturing Co., which dominates the chipmaking industry. Intel's advantage stems from the fact it both designs and manufactures chips, although analysts from theCUBE Research have repeatedly called on the company to spin out its foundry business as part of a bold plan to secure the country's leadership in advanced semiconductor manufacturing. Trump has made repeated interventions in the U.S. chipmaking industry. Earlier this year, he introduced new restrictions on the types of advanced AI chips that could be exported to China, before repealing those sanctions in return for Nvidia Corp. and Advanced Micro Devices Inc. handing over 15% of their revenue from sales in the country. In addition, Trump helped to orchestrate the Stargate Project, which will see SoftBank, OpenAI, Oracle Corp. and others invest up to $500 billion in AI data centers in the U.S. over the next five years.

Japan's SoftBank to take $2 billion stake in computer chip maker Intel

BANGKOK -- Japanese technology giant SoftBank Group plans to take a $2 billion stake in computer chip maker Intel as it deepens its involvement in U.S. semiconductor manufacturing and other advanced technology in the United States, the companies said Monday. Shares in both companies fell Tuesday after the announcement, which coincided with unconfirmed reports that President Donald Trump is considering having the U.S. government buy a stake in the chip maker. SoftBank invests in an array of companies that it sees as holding long-term potential. It has been stepping up investments in the United States since Trump returned to the White House. In February, its chairman Masayoshi Son joined Trump, Sam Altman of OpenAI and Larry Ellison of Oracle in announcing a major investment of up to $500 billion in a project to develop artificial intelligence called Stargate. SoftBank plans to buy $2 billion of Intel's common stock, paying $23 per share. "Semiconductors are the foundation of every industry, Son said in a statement. "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." Intel helped launch Silicon Valley but has fallen behind rivals like Nvidia Corp. and Advanced Micro Devices Inc. and is shedding thousands of workers and slashing costs under its new CEO, Lip-Bu Tan. Intel plans to end the year with 75,000 "core" workers excluding subsidiaries, through layoffs and attrition, down from 99,500 core employees at the end of 2024. The company previously announced a 15% workforce reduction. Trump recently said Tan, who was made CEO in March, should resign but after meeting with him last week said he had an "amazing story." SoftBank's shares were down 2.2% Tuesday in Tokyo, while Intel's dropped 3.7% on Monday in New York.

Intel gets $2 billion lifeline in the form of SoftBank equity investment

SoftBank is investing $2 billion in Intel. This will make SoftBank a top shareholder. However, SoftBank will not seek a board seat. Also, they will not commit to buying Intel chips. Intel shares are expected to rise. SoftBank shares are expected to fall. This investment is a vote of confidence for Intel. Intel is currently working on a turnaround effort. Intel is getting a $2 billion capital injection from SoftBank Group in a major vote of confidence for the troubled U.S. chipmaker that is in the middle of a turnaround effort. The equity investment, announced by the two companies on Monday, is a lifeline for the once-iconic U.S. chipmaker which has struggled to compete after years of management blunders that left it with virtually no foothold in the booming artificial intelligence chip industry. It will make SoftBank a top-10 shareholder of Intel and add to the Japanese tech investor's ambitious bet on artificial intelligence that includes the $500 billion Stargate U.S. data center project. The deal follows media reports last week that the U.S. government may buy a stake in Intel, after a meeting between new CEO Lip-Bu Tan and President Donald Trump that was sparked by the President's demand for Tan's resignation over his ties to Chinese firms. SoftBank's decision to invest in Intel is not connected to Trump, a person familiar with the matter told Reuters. The White House did not immediately respond to a request for comment. "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," SoftBank CEO Masayoshi Son said in a statement. It will pay $23 per Intel share, a slight discount to Monday's closing price of $23.66. SoftBank's investment will come via a primary issuance of common stock by Intel, and, based on the U.S. company's market capitalisation at close of trading on Monday, represent an equity stake of just under 2%, an Intel spokesperson said. The Japanese company would become the sixth largest investor in Intel, according to LSEG data. SoftBank shares dropped more than 5% on Tuesday following the announcement, while Intel surged 5.6% in after-market hours trading. The Japanese company will only take an equity stake in Intel and will neither seek a board seat nor commit to buying Intel's chips, the person familiar with the matter said. Intel has struggled financially and recorded an annual loss of $18.8 billion in 2024, its first such loss since 1986, as it grapples with multiple challenges. Its longtime rival AMD has been gaining share in Intel's mainstay personal computer and server semiconductor markets, while its ambitious and costly plan for a chip contracting business that rivals that of Taiwan's TSMC has failed to take off. The company is now considering a significant change to its contract chip manufacturing business to win major customers, Reuters reported last month, in a potentially expensive shift from its previous strategies. "Intel's dual role as designer and manufacturer/fabricator uniquely positions it as potentially the best platform in the U.S. to compete with TSMC," said Charu Chanana, chief investment strategist at Saxo. Bloomberg News reported earlier on Monday that the U.S. government is in talks to take a 10% stake in Intel. SoftBank declined to provide more details on the Intel investment when asked to comment by Reuters. The Intel funding is the latest in the Japanese company's run of mammoth investment announcements in 2025, which include committing $30 billion to ChatGPT maker OpenAI as well as leading the financing for Stargate. On Monday Taiwan's Foxconn said it plans to manufacture data centre equipment with SoftBank at the Taiwanese firm's former electric vehicle factory in Ohio as part of the Stargate project.

Intel Stock Jumps Over 5% After Hours As SoftBank Buys $2 Billion Stake, Trump Administration Weighs Investment - Advanced Micro Devices (NASDAQ:AMD), ARM Holdings (NASDAQ:ARM)

Intel Corporation INTC surged in after-hours trading after SoftBank Group SFTBF SFTBY agreed to inject $2 billion into the chipmaker amid reports that the Donald Trump administration is weighing a 10% stake in the company. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedInteractive BrokersTrade global markets with low costs and pro-level tools at Interactive Brokers.Get StartedRangeRange delivers AI-powered wealth management at a fraction of the cost. Get StartedRocket HELOCGet a HELOC with mid-600s credit -- borrow and repay on repeat. Get StartedPacasoJoin 10,000+ investors betting on Pacaso's global expansion at $2.90 per share.Get StartedWorthy BondsEarn 7% fixed interest with Worthy Bonds -- start investing with just $10.Get StartedNinjaTraderNinjaTrader gives you futures access with low day-trading margins.Get StartedIRA FinancialInvest your IRA or 401(k) in real estate, crypto, and more with IRA Financial. Get StartedAcornsGrow wealth effortlessly -- Acorns invests your spare change automatically. Get StartedSmartAssetFind a vetted financial advisor near you in minutes with SmartAsset's free tool. Get StartedSoftBank Steps In With $2 Billion Bet On Monday, it was announced that Softbank will invest $2 billion in Intel through a primary issuance of common stock, paying $23 per share. The deal would give the Japanese investment giant just under a 2% equity stake, making it Intel's sixth-largest shareholder, according to LSEG data, noted Reuters. The move underscores SoftBank's aggressive investment streak in 2025, which also includes a $30 billion commitment to OpenAI and backing for Stargate, a $500 billion U.S. data center project. Intel shares closed down 3.66% during regular trading but jumped 5.37% in after-hours following the announcement, Benzinga Pro data show. See Also: American Airlines CFO Declares Worst Is Over, But Cautious Outlook Sinks Stock US Considers National Security Stake Earlier in the day, Bloomberg reported that the U.S. government is in talks to acquire up to a 10% stake in Intel. The speculation comes after President Trump demanded the resignation of Intel CEO Lip-Bu Tan over alleged ties to Chinese firms. Trump later softened his stance after a White House meeting with Tan, when he said, "His success and rise is an amazing story." Tim Seymour of Seymour Asset Management previously cautioned that nationalizing a company is not conventional and has historically sparked sell-offs, but acknowledged the political and strategic backdrop for such a move. Intel's Struggles Deepen Amid Mounting Competition The developments come as Intel grapples with mounting challenges. The company reported an $18.8 billion loss in its foundry business in 2024 despite $8.5 billion in U.S. subsidies. Fitch Ratings has downgraded Intel's credit, citing leadership instability, delays in its Ohio fabrication project -- now pushed into the 2030s -- and weak profitability in its manufacturing pivot. "Intel's balance sheet is not good. A stake could go a long way toward finishing what Gelsinger couldn't afford to build but did it anyway," CNBC's Jim Cramer said. The company's 18A process technology has faced yield issues, leaving Intel behind rivals such as Taiwan Semiconductor Manufacturing Co. TSM, Advanced Micro Devices Inc. AMD and Arm Holdings, Inc. ARM in the race for advanced chips and AI readiness. Intel's Investor Outlook Despite the turmoil, Intel shares are up 17.01% year-to-date, outpacing the Nasdaq 100's 13.05% gain. The company currently holds a consensus price target of $23.77, derived from the opinions of 33 analysts. The three latest analyst updates issued by JP Morgan, Rosenblatt and Loop Capital provided an average price target of $20, suggesting a potential 19.78% downside for Intel. Benzinga's Edge Stock Rankings indicate that Intel has sustained positive momentum across short, medium and long-term timeframes. More performance insights can be found here. Read Next: Cathie Wood Dumps Palantir As Stock Touches Peak Prices, Bails On Soaring Flying-Taxi Maker Archer Aviation Photo Courtesy: Tada Images via Shutterstock.com Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AMDAdvanced Micro Devices Inc$175.50-1.13%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum86.79Growth93.27Quality75.91Value11.85Price TrendShortMediumLongOverviewARMARM Holdings PLC$141.101.58%INTCIntel Corp$24.931.51%SFTBFSoftBank Group Corp$104.59-6.61%SFTBYSoftBank Group Corp$57.483.20%TSMTaiwan Semiconductor Manufacturing Co Ltd$241.361.04%Market News and Data brought to you by Benzinga APIs

SoftBank Seeks $2 Billion Intel Stake

'I appreciate the confidence he has placed in Intel with this investment,' Intel CEO Lip-Bu Tan said. Japan-based venture capital giant SoftBank plans to make a $2 billion investment in troubled chipmaker Intel. The investment gives SoftBank about 2 percent of the Santa Clara, Calif.-based vendor's outstanding shares, according to CNBC. SoftBank will become the fifth largest shareholder in the vendor once the purchase closes. "We are very pleased to deepen our relationship with SoftBank, a company that's at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership," Intel CEO Lip-Bu Tan said in a statement Monday. Tan also said that he and SoftBank Chairman and CEO Masayoshi Son "have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment." [RELATED: Intel In Talks With Trump Administration For US To Take Stake: Report] CRN has reached out to Intel and SoftBank for comment. Son said in a statement that "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." SoftBank has majority ownership of instruction set architectures (ISAs) developer Arm and is in the process of acquiring semiconductor designer Ampere Computing. The SoftBank deal comes amid reports that Intel is negotiating with the Trump administration over the possibility of the U.S. government taking a stake in the semiconductor giant. Trump had called CEO Tan "highly CONFLICTED" and calling on the CEO to "resign, immediately" in an online post before an in-person meeting with the Intel CEO led to Trump posting that Tan's "success and rise is an amazing story." The unusual deal between the U.S. and Intel deal comes as Intel rivals Nvidia and Advanced Micro Devices agree to pay the U.S. federal government 15 percent of their China sales revenue for an export control license to sell Nvidia H20 and AMD MI308 chips to the country and Chinese companies. SoftBank's Son appeared at the White House in January alongside Oracle co-founder and Chief Technology Officer Larry Ellison and OpenAI CEO Sam Altman to announce the three organizations' $500 billion Stargate AI data centers and power generation project. Intel revealed in recent days that it is increasing investments in partners in the second half of the year to give them "more value" and "more benefits" as part of a simplified Intel Partner Alliance program the semiconductor giant plans to launch this October.

Japan's SoftBank to take US$2 billion stake in computer chip maker Intel

BANGKOK -- Japanese technology giant SoftBank Group plans to take a US$2 billion stake in computer chip maker Intel as it deepens its involvement in U.S. semiconductor manufacturing and other advanced technology in the United States, the companies said Monday. Shares in SoftBank fell 4% Tuesday in Tokyo following the announcement, which coincided with unconfirmed reports that President Donald Trump is considering having the U.S. government buy a stake in the chip maker. SoftBank invests in an array of companies that it sees as holding long-term potential. It has been stepping up investments in the United States since Trump returned to the White House. In February, its chairman Masayoshi Son joined Trump, Sam Altman of OpenAI and Larry Ellison of Oracle in announcing a major investment of up to $500 billion in a project to develop artificial intelligence called Stargate. SoftBank plans to buy $2 billion of Intel's common stock, paying $23 per share. That would be about a 2% stake. Intel's shares closed at $23.66 on Monday. "Semiconductors are the foundation of every industry, Son said in a statement. "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." SoftBank posted its first profit in four years in the April-June quarter as it raked in gains from its investment portfolios. It is a major shareholder in Arm Holdings, a British semiconductor and software design company. Intel helped launch Silicon Valley but has fallen behind rivals like Nvidia Corp. and Advanced Micro Devices Inc. and is shedding thousands of workers and slashing costs under its new CEO, Lip-Bu Tan. In the last quarter, the company reported a loss of $2.9 billion. Intel plans to end the year with 75,000 "core" workers excluding subsidiaries, through layoffs and attrition, down from 99,500 core employees at the end of 2024. The company previously announced a 15% workforce reduction. Trump recently said Tan, who was made CEO in March, should resign. But after meeting with him last week Trump relented, saying Tan had an "amazing story."

Intel: Japan's SoftBank acquires $2bn stake

The Japanese tech conglomerate SoftBank will make a "strategic" investment of $2bn in the US chipmaker Intel, according to their announcement on Monday evening. NB: pmt +6.5%. In a joint statement, SoftBank and Intel said they had entered into a definitive agreement under which the Japanese telecommunications and information technology group will acquire Intel common stock at a price of $23 per share, representing a discount of approximately 3% to Intel's closing price on Wall Street yesterday evening ($23.66). Given Intel's current market capitalization of around $104bn, SoftBank will hold under 2% of its capital following the transaction. Shortly before SoftBank's stake was officially announced after the close of US stockmarkets, Intel shares ended Monday's session down 3.6%, the second worst performance in the S&P 500 index, following reports of a possible 10% stake by the US government. SoftBank explains that its investment in Intel is part of its long-term vision to drive the AI revolution by accelerating access to cutting-edge technologies that can support digital transformation, the cloud, and next-generation infrastructure. Officially, the goal is also to invest in cutting-edge technologies and innovation in semiconductors in the United States, with the idea that the production and supply of advanced semiconductors will continue to grow in the country, with Intel set to play a "central" role in this context. Intel's CEO Lip-Bu Tan said that he has worked with Masayoshi Son, SoftBank's CEO, for "several decades". On Wall Street, Intel shares rose more than 5% in electronic trading on Tuesday following all these announcements, while SoftBank shares ended the session down 4% on the Tokyo Stock Exchange.

SoftBank Group, Intel Sign $2 Billion Investment Agreement -- Update

SoftBank Group said it would make a $2 billion investment in Intel, marking the latest effort by Chief Executive Masayoshi Son's firm to boost its commitment in the U.S. technology and semiconductor industry. Under the terms of the agreement, SoftBank would pay $23 a share for Intel's common stock, the companies said. The chipmaker's shares closed at $23.66 apiece on Monday. The investment comes as several tech companies, including Tokyo-based SoftBank, have made a point to raise or otherwise emphasize their investments in domestic manufacturing as they look to win favor with Trump. In January, SoftBank and OpenAI announced a plan to invest up to half a trillion dollars in artificial-intelligence infrastructure in the U.S., together with other partners. The joint venture, called Stargate, would build data centers for OpenAI. SoftBank CEO Son said the company's investment in Intel reflects its belief that advanced semiconductor manufacturing and supply would expand further in the U.S., with Intel playing a critical role. The transaction is subject to customary closing conditions, the companies said. Meanwhile, Trump administration officials are in talks to take a 10% stake in Intel, a move that would make the government one of the company's largest shareholders. The investment would aim to rescue the struggling chip maker and boost semiconductor manufacturing in the U.S., according to people briefed on the talks. The White House has been looking for ways to bolster American market share in semiconductor manufacturing. Officials have previously described Intel as the U.S. company with the best shot at going head-to-head with Taiwan Semiconductor Manufacturing, the dominant player in chip fabrication, given it both designs and fabricates chips.

SoftBank's Son backs ally Tan with $2 billion Intel investment

TOKYO (Reuters) -When Lip-Bu Tan stepped down from the SoftBank Group board in 2022 at a time when the Japanese company was grappling with soured investments, his parting message offered advice on how Masayoshi Son's conglomerate could strengthen its business. Three years later, a resurgent SoftBank has made a show of support by taking a $2 billion stake in Intel as Tan, now the storied American company's CEO, seeks to turn around the embattled chipmaker. Tan took Intel's top job in March and is driving restructuring at the company, which lost out to Nvidia in artificial intelligence chips and whose foundry business is struggling. "This is really a vote of confidence of Masa in the turnaround materialising over the coming years," said Rolf Bulk, an analyst at New Street Research. "For Intel, the investment makes it more likely that SoftBank could be a potential client to Intel in the future." The two men have a long-standing relationship. "Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment," Tan said in a statement. In addition to his time on SoftBank's board, Tan became chairman of chip startup SambaNova, which received backing from SoftBank's Vision Fund. "Masa is brilliant; he's a visionary. But he still needs people to provide safeguards, give him advice, and make him even more successful," Tan wrote in his statement on leaving the SoftBank board. Son, 68, is known as a savvy political operator, appearing publicly with U.S. President Donald Trump twice in the months following the presidential election. He has close relationships with leading tech entrepreneurs such as Jensen Huang, CEO of Nvidia, in which SoftBank has a stake. Last week Tan, 65, met with Trump, who days earlier had called on him to resign due to his ties to Chinese firms. Washington is in talks to take a 10% stake in Intel, Bloomberg has reported. "SoftBank's investment helps but it is not what is going to move the dial for Intel," said Amir Anvarzadeh of Asymmetric Advisors. "It's more to maintain this very good relationship he has with Trump," he said. BACK ON THE OFFENSIVE Son is making splashy investments again after some underperforming tech bets forced a period of retrenchment, with the conglomerate pursuing a $500 billion U.S. data centre venture with OpenAI, the maker of ChatGPT. SoftBank has acquired a former electric vehicle factory from Foxconn in Ohio as it looks to advance its Stargate data center project. Arm, which is controlled by SoftBank, plans to make its own chips, and the Japanese conglomerate also acquired chipmaker Graphcore last year. SoftBank's shares have been on a tear, boosted by positive sentiment around its AI investments. "The $2 billion investment should be viewed more as a strategic stake rather than a financial one," said Nori Chiou, investment director at White Oak Capital Partners. "In the world of cutting-edge semiconductor manufacturing, only capital commitments in the $30 billion-$40 billion range carry true commercial weight," he said. Industry experts say Tan still faces a mountain to climb to turn around Intel, which has suffered from years of management missteps. "It is Masa making a contrarian bet but one where I think the downside risk is fairly limited," said Bulk of New Street Research. (Reporting by Sam Nussey and Anton Bridge in Tokyo and Fanny Potkin in Singapore; Editing by Muralikumar Anantharaman)

Intel secures $2 billion investment from SoftBank, US government may follow

US government is reportedly considering taking up to a 10% stake in Intel. SoftBank Group of Japan has made a $2 billion equity investment in Intel. This comes at a time when the US chipmaker was struggling to keep operations running while attempting to turn things around under increasing pressure. The deal, announced on Monday, will make SoftBank one of Intel's top ten shareholders and reflects the Japanese investor's growing interest in artificial intelligence. The investment comes at a critical time for Intel, which reported its first annual loss since 1986, totalling $18.8 billion. Intel, once the dominant player in the semiconductor industry, has been losing ground to rivals such as AMD in the PC and server chip markets, while its contract manufacturing business has failed to attract the scale of clients that Taiwan's TSMC does. According to Reuters, SoftBank will pay $23 per Intel share, which is slightly less than Monday's closing price of $23.66, for an equity stake of just under 2%. Despite its modest size, this move places SoftBank as Intel's sixth largest investor, according to LSEG. According to a person familiar with the matter, the Japanese conglomerate will not seek a seat on the board or commit to purchasing Intel chips. SoftBank CEO Masayoshi Son stated that the investment demonstrates Intel's commitment to expanding US semiconductor manufacturing capacity. SoftBank's broader AI strategy includes the $500 billion Stargate data centre project and a $30 billion investment in OpenAI made earlier this year. Furthermore, the government is closely monitoring Intel's comeback efforts. According to Bloomberg, the US government is considering buying up to a 10% stake in Intel following talks between President Donald Trump and CEO Lip-Bu Tan. However, there were mixed reactions, with Intel shares rising 5.6% in after-market trading and SoftBank's stock falling more than 5% in Tokyo. Analysts believe Intel's unique position as a chip designer and manufacturer could still help it mount a credible challenge to TSMC in the United States, assuming it can carry out its long-delayed strategy.