Softbank invests $2 billion in Intel as Trump administration also weighs 10% equity stake

SoftBank Group has invested $2 billion in Intel, providing a capital boost to the struggling US chipmaker as it pushes ahead with turnaround efforts under mounting competitive and financial pressure.

The deal, announced on Monday, will make the Japanese conglomerate one of Intel’s top 10 shareholders with an equity stake of just under 2%, according to Reuters. SoftBank will pay $23 per share, slightly below Intel’s Monday closing price of $23.66. Based on data from LSEG, this positions SoftBank as Intel’s sixth largest investor.

Intel, once the dominant force in semiconductors, reported its first annual loss since 1986 earlier this year, amounting to $18.8 billion. The company has steadily lost market share to rivals such as AMD in PCs and server chips, while its contract manufacturing business has failed to match the scale of Taiwan’s TSMC.

Masayoshi Son, SoftBank’s chief executive, said the investment underscores confidence in the expansion of advanced semiconductor manufacturing in the United States. It also ties into SoftBank’s broader artificial intelligence ambitions, which include the $500 billion Stargate data centre project and a $30 billion investment in OpenAI.

The Japanese group will not seek a board seat at Intel or commit to purchasing its chips, according to people familiar with the matter. While SoftBank shares fell more than 5% in Tokyo following the announcement, Intel’s stock rose 5.6% in after-market trading.

At the same time, the US government is considering taking a stake of around 10% in Intel, Bloomberg reported, citing a White House official and others familiar with the matter. Such an investment could make Washington the company’s largest shareholder.

Discussions are focused on whether to convert some or all of Intel’s $10.9 billion in grants under the Chips and Science Act into equity. At current market value, a 10% holding would be worth about $10.5 billion. Intel has so far received $2.2 billion of its Chips Act funds.

The White House has not confirmed the reports. “No deal is official until it’s announced by the administration,” spokesman Kush Desai told Bloomberg, declining to provide further details. Intel has not commented publicly on the matter.

The possibility of government investment follows a recent meeting between President Donald Trump and Intel CEO Lip-Bu Tan. Bloomberg reported that the discussions were prompted after Trump demanded Tan’s resignation over alleged ties to Chinese firms, although SoftBank’s investment decision is understood to be unrelated.

Analysts say Intel’s dual role as both a chip designer and manufacturer could still enable it to challenge TSMC if it can successfully execute its long-delayed strategy, with external backing from both private and public investors seen as critical to that recovery.