Japanese conglomerate SoftBank has agreed to invest $2 billion in Intel, marking a significant commitment to advanced technology and semiconductor development in the United States. The deal, announced after markets closed on Monday, involves SoftBank purchasing Intel common stock at $23 per share. Following the news, Intel’s stock, which had closed at $23.66, surged more than 5% in after-hours trading.
SoftBank Group Chairman and CEO Masayoshi Son emphasized the strategic nature of the investment, stating that it reflects confidence in the expansion of advanced semiconductor manufacturing in the U.S., with Intel playing a pivotal role. This move serves as a vote of confidence for Intel, which has faced stiff competition from rivals like Nvidia in recent years. It also highlights SoftBank’s renewed focus on the U.S. market, particularly in AI-related technologies. The company recently acquired a Foxconn-owned factory in Lordstown, Ohio, as part of its plans to develop AI data centers.
Intel, under the leadership of new CEO Lip-Bu Tan, is undergoing a restructuring effort to streamline its semiconductor operations and prioritize its core client and data center business. Earlier this summer, the company shut down its automotive architecture division and laid off most of its staff. It also announced workforce reductions of 15% to 20% in its Intel Foundry division.
Tan has faced political challenges in recent weeks, including calls from former President Donald Trump for his resignation over unsubstantiated claims of conflicts of interest. Reports also surfaced that the Trump administration had discussed taking a stake in Intel.
The SoftBank-Intel agreement comes amid heightened tensions in the semiconductor industry. Just days before the deal was announced, the Trump administration threatened new tariffs on imported semiconductor chips as part of a broader strategy to boost domestic production.
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