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Japan-based Softbank Group will make a $2 billion investment in computer chip maker Intel Corp. as they look to deepen their involvement in advanced technology and U.S. semiconductor innovation, the companies said Monday.
The agreement coincides with unconfirmed reports that the Trump administration is considering a minority government stake in Intel amid the company’s financial struggles. The Silicon Valley company reported a net loss of $2.9 billion in its latest quarter. It is also downsizing and cutting back certain initiatives in an effort to position itself for growth in the artificial intelligence era.
As part of the investment, Softbank has agreed to pay $23 per share of Intel’s common stock, slightly discounted from its current share value on the Nasdaq stock exchange. The deal is subject to customary closing conditions. Softbank is also collaborating with Foxconn to operate an AI server site in Ohio.
“This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role,” Softbank CEO Masayoshi Son said in a statement.
The deal would give Softbank a roughly 2% stake in Intel, making the investment holding firm Intel’s fifth largest stakeholder with 87 million shares. Blackrock and Vanguard are the largest, each holding a roughly 9% stake in the company, according to Yahoo! Finance.
“Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment,” Intel CEO Lip-Bu Tan said in a statement.
In addition to Softbank, the Trump administration is interested in a potential 10% government stake in Intel following positive talks between the president and Tan, Bloomberg first reported. White House staff did not immediately return requests for comment.
After calling for Tan’s resignation earlier this month over alleged ties to Chinese firms, Trump swiftly changed his tune, later posting on Truth Social that the executive’s “success and rise is an amazing story.”
Under Tan’s leadership, Intel is making deep cuts as part of an overall revamp. It plans to reduce its core workforce to 75,000 by the end of this year, down from 99,500 as of Dec. 28, 2024. The company is also slowing construction of its $28 billion chip facility in New Albany, Ohio, and scrapping manufacturing projects in Germany and Poland, among other actions.
