Intel Gets A $2 Billion Investment And Vote Of Confidence From SoftBank To Advance US Chip Innovation
Intel announced it has signed a definitive securities purchase agreement with SoftBank that will see the majority Arm stakeholder invest $2 billion into Intel's common stock. The move, which can be viewed as a vote of confidence in the midst of Intel's ongoing effort to restructure its business operations, is being billed as a deepened commitment by both parties to invest in advanced technology and semiconductor innovation in the U.S.
"Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. 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," said Masayoshi Son, chairman and CEO of SoftBank Group Corp.
The unexpected announcement comes just one week after the Trump administration met with Intel CEO Lip-Bu Tan. That meeting took place after President Donald Trump called for Tan's immediate resignation on his Truth Social platform, calling him "highly CONFLICTED" after Arkansas Republican Senator Tom Cotton raised concerns on X about Tan's alleged "deep ties to the Chinese Communists."
Tan's meeting with the President was evidently fruitful, as after the meeting took place, Trump praised the CEO, saying his "success and rise is an amazing story." He also indicated that Tan and his cabinet members "are going to spend time together, and bring suggestions to me during the next week."
In the days that followed, Intel's share price popped on a report that the White House was considering taking a stake in Intel. According to a report in The New York Times, the Trump administration discussed a 10% stake in Intel to bolster semiconductor manufacturing in the U.S. The report follows a deal the White House made with AMD and NVIDIA, in which both companies agreed to pay 15% of AI chip sales to China.
Intel's share price is again soaring, this time on heels of SoftBank's announced investment. Shares of Intel are up nearly 10% at the time of this writing.
"We are very pleased to deepen our relationship with SoftBank, a company that’s at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership. Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment," Tan said in a statement.
The deal breaks down to SoftBank paying $23 per share of Intel's common stock, subject to customary closing conditions.
