SoftBank invests $2B in Intel, becoming 6th-largest shareholder
What's the story
SoftBank Group has announced a major investment of $2 billion in Intel. The move will give the Japanese conglomerate a nearly 2% stake in the US chipmaker, making it its sixth-largest shareholder. The companies confirmed that SoftBank will pay $23 per share for the Intel common stock. Despite not taking a board seat or committing to chip purchases, this investment underscores SoftBank's strategic support for US semiconductor innovation and production capabilities.
Strategic backing
Investment to boost Intel's chip manufacturing efforts
Following the announcement, SoftBank's shares fell over 5% on Tuesday while those of Intel rose by 5.6% in after-market hours trading. The investment comes as a major boost for Intel, which has been trying to manufacture chips for external customers. The company has invested billions of dollars into this project under its former CEO. However, new CEO Lip-Bu Tan has scaled back these ambitions while trying to stabilize the company after years of underperformance.
Clarification
US government stake in Intel speculation dismissed
Despite media reports suggesting that the US government may buy a stake in Intel, SoftBank's decision to invest in the company is not connected to President Donald Trump's demand for Tan's resignation over his ties with Chinese firms. The White House has yet to comment on these developments.
Investment spree
SoftBank's massive investment spree in 2025
The investment in Intel is part of SoftBank's string of massive investment announcements in 2025. These include a $30 billion commitment to OpenAI, the company behind ChatGPT, and leading funding for Stargate, a $500 billion data center project in the US. Taiwan's Foxconn has also announced plans to manufacture data center equipment with SoftBank at its former electric vehicle factory in Ohio as part of the Stargate project.