Key Points:
- SoftBank invests $2B in Intel, backing its turnaround as a key shareholder.
- The deal signals confidence in Intel’s chipmaking and AI ambitions.
- Intel plans a manufacturing revamp to counter losses and rising competition.
SoftBank Invests $2 billion in Intel Corp., bolstering the U.S. chipmaker’s turnaround strategy as global competition in the semiconductor industry intensifies, while also signaling renewed investor confidence in Intel’s ambitious efforts to reclaim technological leadership and expand its global manufacturing footprint.
The investment, which makes SoftBank one of Intel’s top 10 shareholders, represents a vote of confidence in Intel’s role in advanced semiconductor manufacturing and its potential resurgence in the booming artificial intelligence (AI) market. Intel has struggled in recent years with strategic missteps and declining market share, but SoftBank’s support underscores growing optimism in its recovery.
A Strategic Boost for Intel’s Future
SoftBank Invests will acquire its stake through a primary issuance of common stock, priced at $23 per share, slightly below Monday’s closing price of $23.66. The stake, just under 2%, makes the Japanese investor Intel’s sixth-largest shareholder, according to LSEG data.
SoftBank CEO Masayoshi Son emphasized the U.S.-centric vision behind the deal. “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,” he said.
The move aligns with SoftBank’s aggressive AI-focused investments, which also include its $500 billion Stargate U.S. data center initiative and a $30 billion commitment to OpenAI earlier this year. The company has further extended its U.S. footprint through partnerships such as its new manufacturing collaboration with Taiwan’s Foxconn in Ohio.
Intel shares jumped 5.6% in after-hours trading following the news, while SoftBank Invests stock slipped more than 5% on Tuesday in Tokyo trading.
Challenges and Opportunities in the Chip Race
Intel is navigating one of the toughest periods in its history. The company posted an $18.8 billion loss in 2024, its first annual loss since 1986. It has faced intensifying pressure from rivals such as AMD in the personal computer and server markets, as well as from Taiwan Semiconductor Manufacturing Co. (TSMC), the dominant global leader in contract chipmaking.
In response, Intel is exploring a potential overhaul of its chip contract manufacturing business in hopes of attracting major customers. Analysts suggest its dual role as both a designer and fabricator of chips gives Intel a unique advantage if it can successfully execute its strategy.
“Intel’s dual role as designer and manufacturer uniquely positions it as potentially the best platform in the U.S. to compete with TSMC,” said Charu Chanana, chief investment strategist at Saxo.
The U.S. government is also reportedly exploring a potential stake in Intel, signaling its strategic importance to national semiconductor independence, though no agreement has been finalized.
For SoftBank, the Intel deal is part of a broader portfolio reshaping as it bets heavily on infrastructure critical to AI. The group has avoided operational influence at Intel, opting instead for a straightforward equity stake without seeking a board seat or chip supply commitments.
With SoftBank Invests, Intel gains not only financial backing but also renewed global credibility as it strives to reclaim leadership in advanced chipmaking. For SoftBank, the deal strengthens its U.S.-centered AI and semiconductor ecosystem, cementing its role as one of the most influential technology investors of the decade.
