SoftBank Group Corp. (TYO:9984) announced on Monday that it will invest $2 billion in Intel (NASDAQ: INTC) by purchasing common stock. The deal aims to strengthen advanced chipmaking facilities in the United States.
Intel shares jumped more than 11% in early Tuesday trading following the announcement. U.S. Commerce Secretary Lutnick and Treasury Secretary Scott Bessent also made positive remarks about Intel’s role in semiconductor production.
SoftBank (OTC: SFTBY) will pay $23 per share, slightly below Intel’s Monday closing price of $23.64.
“This strategic investment reflects our belief that semiconductor manufacturing will expand in the U.S., with Intel playing a critical role,” said Masayoshi Son, CEO of SoftBank.
Intel CEO Lip-Bu Tan welcomed the move, saying it supports SoftBank’s artificial intelligence ambitions while reinforcing Intel’s turnaround strategy.
Intel’s Struggles and U.S. Backing
Intel has faced declining sales and shrinking cash reserves in recent years, losing ground to rivals such as NVIDIA (NASDAQ: NVDA) and AMD (NASDAQ: AMD) in the AI chip market. Its foundry business has also struggled against TSMC (NYSE: TSM), whose manufacturing processes overtook Intel’s technology.
Bloomberg reported that the Trump administration is considering taking a 10% equity stake in Intel by converting CHIPS Act grants into shares. Lutnick said the U.S. must reduce its reliance on Taiwan for semiconductors, adding: “We’d like an American transistor built in America.”
Treasury Secretary Scott Bessent clarified that any U.S. investment would be designed to stabilize Intel, not artificially boost demand.
Market Reaction and Outlook
Wells Fargo analyst Aaron Rakers said the market’s positive response is justified, calling SoftBank’s investment a vote of confidence in Intel’s long-term restructuring plan.
Intel CEO Tan recently met with President Donald Trump and outlined plans to scale back factory projects while focusing on a more reliable product roadmap. However, analysts warn that Intel still faces an uphill battle as its foundry division continues to lose money.
SoftBank’s $2 billion deal highlights its aggressive push into AI and chipmaking. The Japanese group has been expanding AI infrastructure in the U.S., including a $500 billion partnership with OpenAI.
