SoftBank Invests Two Billion Dollars in Intel Amid US Chipmaking Revival

The Japanese technology giant SoftBank has announced a substantial investment of two billion dollars in the US chipmaker Intel, signalling renewed confidence in the efforts to revitalise the company. The deal sees SoftBank acquire a stake of just under two per cent at a price of twenty three dollars per share, a modest discount compared to Intel’s closing price of twenty four ninety two per share the previous evening. This purchase makes SoftBank Intel’s sixth largest investor.

Masayoshi Son, SoftBank’s chairman and chief executive, emphasised the strategic nature of the move, describing semiconductors as the foundation of every industry and hailing Intel’s five decade legacy of innovation. He commented that the investment reflects a belief in a growing future for advanced chip manufacturing in the United States, with Intel expected to play a pivotal part in this expansion.

LipBu Tan, Intel’s relatively new chief executive, is now charged with steering the former industry leader back to prominence. Having once served on SoftBank’s board, Tan now faces the challenging task of rejuvenating Intel after years of falling behind during the global surge in demand for artificial intelligence chips. Over the past five years, Intel has suffered declining market share and a dramatic drop in share price, eclipsed by Nvidia which is currently America’s most valuable public company.

The timing of the investment is notable as it coincides with reports that the Trump administration is considering taking a direct stake in Intel. Talks suggest that the US government may seek to convert some grants extended under the Chips and Science Act into a ten per cent shareholding in the company. Such a move would likely accelerate Intel’s ambition to build the world’s largest chipmaking facility in Ohio and highlights the shifting approach of the White House towards a more transactional industrial policy designed to encourage domestic investment and manufacturing.

The Chips and Science Act, enacted in August two thousand and twenty two, authorised almost two hundred and eighty billion dollars in fresh funding to promote semiconductor research and production in the United States. The country’s share of global chip production has shrunk from nearly thirty seven per cent in nineteen ninety to less than twelve per cent today, underscoring the urgency behind these new investments and government interventions.

SoftBank’s recent activity additionally includes leading a funding round for a massive five hundred billion dollar American data centre project, as well as a thirty billion dollar stake in OpenAI. Tokyo has also committed to a five hundred and fifty billion dollar investment package into the United States, forming part of wider trade negotiations. However, the SoftBankIntel deal is understood to be outside that particular package.

This latest injection of capital signals both public and private faith that Intel can recover its position as an industry leader as global competition around semiconductor technology intensifies and the United States seeks to regain its standing in the sector.