SoftBank Invests $2 Billion in Intel, Signaling U.S. Commitment to Advanced Technology and Semiconductors
Global conglomerate SoftBank is set to inject $2 billion into American tech giant Intel, marking a significant commitment to advanced technology and semiconductors within the U.S. This investment, consisting of the purchase of Intel common stock, was officially announced on Monday following market close. The deal will see SoftBank pay $23 per share of Intel common stock, resulting in an over 5% surge in Intel’s shares during after-hours trading, with the company’s closing price at $23.66 prior to the announcement.
In a statement, SoftBank Group Chairman and CEO Masayoshi Son expressed his belief that advanced semiconductor manufacturing and supply will experience further expansion in the United States, with Intel playing a pivotal role in this growth. This strategic investment also signifies SoftBank’s renewed focus on the U.S., particularly in the realm of AI chips, following its recent acquisition of a factory in Lordstown, Ohio, previously owned by Foxconn and intended for building AI data centers.
Intel, currently under new leadership with CEO Lip-Bu Tan, is in the process of restructuring its semiconductor business to streamline operations and prioritize its core client and data center portfolio. This reorganization comes on the heels of Intel’s closure of its automotive architecture business and subsequent layoffs of most staff members. Additionally, plans have been announced for a reduction in the workforce of Intel Foundry division by 15-20%.
Tan has faced political challenges recently, as President Trump publicly called for his resignation due to alleged conflicts of interest. However, these accusations were made without supporting evidence, and discussions have emerged within the administration regarding potential investment in Intel.
This SoftBank-Intel deal transpired only days after the U.S. government threatened new tariffs on imported semiconductor chips as part of a strategy to bolster domestic production.
