Japan’s SoftBank Group Set to Invest $2 Billion in US Chip Giant Intel
In a significant boost to the US semiconductor sector, Japan-based tech investor SoftBank Group announced on Tuesday its plans to invest $2 billion in Intel, one of Silicon Valley’s most iconic companies. The move comes as the US government reportedly considers taking a 10 percent stake in the troubled US chip giant to boost its competitiveness in the global market.
The investment is the latest in SoftBank’s series of business deals in the United States, spearheaded by its charismatic founder, Masayoshi Son, who has been aggressively courting US President Donald Trump. “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,” Son said in a joint press release with Intel announcing the deal.
SoftBank will pay $23 per share of Intel common stock, a significant vote of confidence in the US chipmaker’s future prospects. The investment comes at a time when Intel is seeking to revive its fortunes, which have been dwarfed by Asian powerhouses TSMC and Samsung in the made-to-order semiconductor business.
According to US media, including Bloomberg News and the Wall Street Journal, the Trump administration is discussing taking a stake of about 10 percent in Intel to boost the chipmaker and the American semiconductor sector. This move would be a significant intervention in the US technology sector and reflects the administration’s growing concern about the country’s competitiveness in the global semiconductor market.
SoftBank’s investment in Intel is not its first foray into the US technology sector. Since Trump returned to power, Son has already announced other investment plans in the United States, including its leading role in the $500-billion Stargate project to build AI infrastructure in the United States, in partnership with cloud giant Oracle and ChatGPT-maker OpenAI.
Lip-Bu Tan, Intel’s chief executive officer, welcomed the investment, saying it demonstrates the company’s close ties with SoftBank. “SoftBank is a company that’s at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing US technology and manufacturing leadership,” he said.
The investment has also been praised by Trump, who had previously pressed Tan to resign over national security concerns related to his links to firms in China. However, in a recent social media post, Trump praised Tan, saying his “success and rise is an amazing story.”
While the investment is significant, analysts say it is a relatively small move for SoftBank, which has a history of making bold investments in the technology sector. Sharon Chen, an analyst from Bloomberg Intelligence, described the investment as “small” but said it “suggests the company could invest more in the semiconductor industry as it seeks to be a key participant in the sector’s development.”
The investment is expected to be finalized in the coming weeks, pending regulatory approvals. As the US technology sector continues to evolve, SoftBank’s investment in Intel marks a significant milestone in the company’s strategy to become a leading player in the global semiconductor market.
