softbank bets big on intel: $2 billion investment fuels us chipmaking
san jose, Tuesday, 19 August 2025.
softbank group is making a bold move by investing $2 billion in intel. the goal is to boost advanced semiconductor production in the united states. softbank will acquire common stock at $23 per share. this investment aligns with the us government’s plan to strengthen domestic chip manufacturing. intel’s stock jumped 5% after hours. this deal could significantly alter the competitive dynamics for industry giants like tsmc and nvidia, potentially reshaping the semiconductor landscape.
Investment details and strategic alignment
SoftBank Group (SBG) announced an investment of $2 billion in Intel, acquiring common stock at $23 per share [1][2]. Masayoshi Son, Chairman and CEO of SBG, expressed confidence in Intel’s role in advancing semiconductor manufacturing in the U.S [2]. Intel CEO Lip-Bu Tan welcomed the investment, highlighting the shared commitment to advancing U.S. technology and manufacturing leadership [2]. This investment aims to accelerate access to advanced technologies supporting digital transformation, cloud computing, and next-generation infrastructure [2]. The deal is subject to customary closing conditions [2].
Market reaction and potential government stake
News of the investment triggered market reactions, with Intel’s stock initially dropping 5.5% following reports of potential government involvement [3]. The stock later recovered, showing a 5% increase in after-hours trading after the announcement of SoftBank’s investment [1][3]. The U.S. government is reportedly considering a 10% stake in Intel through the CHIPS and Science Act, potentially making it the largest shareholder [3][6]. This stake would be worth approximately $10.5 billion based on Intel’s current market capitalization [3].
Government’s strategic move and industry impact
The potential government equity investment aligns with a broader trend of increased government intervention in strategic industries [3]. The Trump administration’s team has previously facilitated agreements involving semiconductor sales and a ‘golden share’ in the sale of U.S. Steel Corp [3]. The Department of Defense also took a $400 million stake in MP Materials Corp [3]. If the government proceeds with the Intel investment, it could provide Intel with more flexibility to revitalize its foundry business [3]. However, challenges remain, including a weak product roadmap and difficulties attracting customers [3].
Intel’s challenges and future prospects
Intel, once a leader in chip manufacturing, has faced challenges in keeping pace with competitors like TSMC and Samsung [7]. The company’s efforts to establish a semiconductor center in Ohio have faced delays [7]. Federal funding and strategic investments like SoftBank’s could provide necessary momentum [3][7]. Analysts suggest that government support could give Intel more room to revive its foundry business, but the company still faces challenges [3]. Intel received nearly $8 billion in subsidies from the CHIPS and Science Act last year [3].