Technology

SoftBank invests 2 billion dollars in Intel - Washington examines state participation

SoftBank invests $2 billion in Intel as Washington considers its own stake in the U.S. chipmaker for security reasons.

Intel
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Eulerpool News Aug 20, 2025, 6:49 PM

Japan's SoftBank invests 2 billion dollars in embattled US chipmaker Intel, acquiring around two percent of the shares. The entry is at a price of 23 dollars per share, as Intel announced. The news caused the company's shares to rise by 5 percent in after-hours trading.

SoftBank CEO Masayoshi Son stated the investment underscores the commitment to "advancing US technology and manufacturing leadership.” Intel CEO Lip-Bu Tan, in office since March, spoke of decades-long collaboration with Son and expressed gratitude for the trust.

Support from Tokyo comes at a delicate time: President Donald Trump initially called for Tan's resignation for security reasons before personally speaking with him about future options last week. Meanwhile, the US government is considering acquiring a direct stake in Intel. The mere prospect of this has driven the company's shares up by about 12 percent within a week.

Intel is already one of the main beneficiaries of the Chips Act passed in 2022, from which the company has so far received $7.9 billion in production subsidies. However, Tan warns that Intel could withdraw from cutting-edge technology in the long term without major orders from external customers – a scenario that would significantly harm US plans to repatriate semiconductor manufacturing.

The ambitious construction plans for new factories in Ohio have been recently slowed down by Tan, as the financing remains uncertain. Even under his predecessor Pat Gelsinger, Intel had not succeeded in winning major customers like Nvidia, Apple, or Qualcomm for its own foundry business.

For SoftBank, the commitment is not just a financial investment, but also part of a broader U.S. strategy. The company plays a growing role in major technology projects, including the $500 billion "Stargate" initiative with OpenAI and Oracle to build a nationwide AI infrastructure.

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