Intel just received a major boost. SoftBank has invested $2 billion in the struggling U.S. chipmaker, securing a 2% stake. The SoftBank-Intel investment comes as the Trump administration weighs its own ownership in Intel, viewing the company as critical to U.S. technology and security.
What’s Happening & Why This Matters
SoftBank, led by CEO Masayoshi Son, announced the deal in Tokyo. Son called Intel a “trusted leader in innovation” and said the SoftBank Intel investment reflects confidence in U.S. semiconductor growth. Shares of Intel jumped more than 5% in after-hours trading, while SoftBank’s stock fell about 4%.
Intel, valued at over $100 billion, has struggled with declining sales and growing competition from Nvidia and Advanced Micro Devices (AMD). New CEO Lip-Bu Tan, who took charge just four months ago, is pushing to revive Intel’s technological leadership. Tan described the SoftBank Intel investment as “a deepening of a decades-long relationship.” He added that Intel shares SoftBank’s commitment to U.S. manufacturing strength.
The U.S. government is also considering a direct stake, potentially up to 10%. If approved, this would make Washington Intel’s largest shareholder, surpassing Vanguard. This would follow the Department of Defense’s $400 million preferred stake in MP Materials, a rare-earth producer. Trump has also hinted at tariffs as high as 100% on imported semiconductors, a policy that could boost Intel against overseas rivals.
Analysts say the SoftBank investment is a confidence signal. Danni Hewson of AJ Bell noted that Intel’s “position as the last U.S. manufacturer of high-end semiconductors gives it strategic value,” but warned that turning this into financial performance remains the true challenge.
For SoftBank, the Intel deal adds to its U.S. expansion. The Japanese government has encouraged this as part of trade negotiations, while Trump has previously announced SoftBank’s plan to invest $100 billion in the U.S. economy over four years. The SoftBank-Intel investment could further solidify these plans.
TF Summary: What’s Next
Intel now has two powerful backers: SoftBank and potentially the U.S. government. With tariffs, subsidies, and foreign policy tied to semiconductors, the company’s role extends beyond business into geopolitics. If CEO Lip-Bu Tan succeeds, Intel could reclaim its place as a technology leader while strengthening U.S. manufacturing independence.
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