Japanese conglomerate SoftBank announced a $2 billion investment in Intel by purchasing the company’s common stock at $23 per share. Intel shares rose more than 5% after the deal was announced, TechCrunch reports.
SoftBank Chairman Masayoshi Son said the strategic investment reflects his belief in the growth of semiconductor manufacturing in the U.S., where Intel has a key role to play. SoftBank is also ramping up its AI efforts, recently acquiring Foxconn’s Lordstown, Ohio, facility to build AI data centers.
The investment provides additional support for Intel as it restructures under new CEO Lip-Bu Tan. This year, the company closed its automotive architecture division and laid off most of its staff, and announced a 15-20% cut in its Intel Foundry staff to focus on its client and data center businesses.
SoftBank confirmed it would buy Intel shares as part of a long-term strategic partnership aimed at strengthening U.S. technological independence and accelerating the development of AI chips. The deal also coincides with political challenges for Intel: U.S. President Donald Trump has previously called for the CEO to step down over Tang's ties to China, and his administration has discussed the possibility of a government investment in the company. In addition, the White House has threatened new tariffs on imported chips to stimulate domestic production.
Analysts see the deal as a signal of renewed confidence in Intel after years of pressure from competitors, and as an important step to strengthen the company's position in the AI and advanced semiconductor markets.