Intel is set to receive a significant $2 billion investment from SoftBank Group, marking a strong endorsement for the struggling U.S. chipmaker amidst its ongoing efforts to revitalize its business.
Announced on Monday by both companies, this equity investment offers crucial support to the once-prominent U.S. chipmaker, which has faced challenges after a series of management missteps left it lagging in the booming AI chip sector.
This move will position SoftBank as a top-10 shareholder in Intel, adding to the Japanese tech giant’s aggressive AI investment strategy, which includes the $500 billion Stargate U.S. data center initiative.
“While SoftBank’s investment is beneficial, it won’t be the game-changer for Intel,” commented Amir Anvarzadeh, Japan equity strategist at Asymmetric Advisors.
He added, “This is more about maintaining the close relationship with Trump,” referring to SoftBank CEO Masayoshi Son.
The deal follows reports of potential U.S. government investment in Intel after a meeting between new CEO Lip-Bu Tan and President Donald Trump, who had called for Tan’s resignation due to his ties with Chinese firms.
The investment also aligns with Tokyo’s recent $550 billion investment package into the U.S. as part of a trade agreement with Washington.
A Japanese government insider noted that the Intel investment is not currently part of that package.
According to a source close to the matter, SoftBank’s decision to invest in Intel is independent of Trump. The White House did not immediately comment.
“This strategic investment highlights our confidence in the expansion of advanced semiconductor manufacturing in the U.S., with Intel playing a key role,” Son stated.
SoftBank will acquire Intel shares at $23 each, slightly below Monday’s closing price of $23.66.
The investment will be made through a primary issuance of Intel’s common stock, representing nearly 2% of the company’s market cap as of Monday’s close, an Intel spokesperson explained.
Data from LSEG indicates that this would make SoftBank the sixth largest shareholder in Intel.
Following the announcement, SoftBank shares fell by 4% on Tuesday, while Intel’s shares rose by 5.6% in after-hours trading.
SoftBank will only take an equity stake in Intel and will not seek a board seat or commit to purchasing Intel’s chips, according to the source.
Facing Multiple Challenges
Intel is grappling with financial difficulties, having posted an $18.8 billion annual loss in 2024, its first since 1986, due to various challenges.
Its main competitor, AMD, has been gaining market share in Intel’s core PC and server semiconductor sectors, while Intel’s ambitious, costly plan to rival Taiwan’s TSMC in chip contracting has faltered.
In a potential pivot from previous strategies, Intel is now considering significant changes to its contract chip manufacturing business to attract major clients, Reuters reported last month.
“Intel’s dual capabilities as both designer and manufacturer uniquely position it as a strong U.S. contender against TSMC,” noted Charu Chanana, chief investment strategist at Saxo.
Earlier reports by Bloomberg News suggested the U.S. government is discussing acquiring a 10% stake in Intel.
SoftBank has refrained from providing further details on the Intel investment when queried by Reuters.
Lip-Bu Tan, an industry veteran and former SoftBank board member until 2022, expressed gratitude to Son for his “confidence in Intel through this investment.”
This Intel funding marks the latest in a series of significant investment announcements by the Japanese firm in 2025, including a $30 billion commitment to ChatGPT creator OpenAI and leading the financing for Stargate.
