In a strategic move to bolster U.S. chip manufacturing, Japan's SoftBank Group announced a US$2 billion investment in Intel Corporation today (Aug. 19), purchasing shares at US$23 each. The deal sent Intel's stock soaring 5.66% to US$25 in after-hours trading as markets welcomed the show of confidence in the struggling chipmaker.
The investment comes at a critical juncture for Intel, which has missed out on the AI semiconductor boom despite heavy spending to establish its foundry business. While the company suffered its worst annual performance in over 50 years with a 60% stock plunge in 2023, shares have shown signs of recovery with an 18% gain year-to-date.
SoftBank's move continues its aggressive U.S. expansion, following recent acquisitions including a Foxconn electric vehicle factory in Ohio and collaborations with OpenAI and Oracle on the massive "Stargate" data center project. For Intel, the capital injection supports its efforts to regain technological leadership after falling behind competitors in chip manufacturing.
Notably, the investment follows reports that Intel has been in talks with the Trump administration about potential government support, including discussions of a possible 10% stake purchase by the U.S. government. SoftBank CEO Masayoshi Son called Intel "a trusted innovation leader for over 50 years," while the Intel CEO praised the shared commitment to advancing American tech leadership.
Industry analysts view the deal as a potential turning point for Intel's foundry ambitions while giving SoftBank a strategic position in the crucial semiconductor supply chain. The partnership underscores how geopolitical concerns about chip production are reshaping global investment patterns in the tech sector.
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