Intel receives a $2 billion investment from SoftBank amid a crisis in the chip industry.
SoftBank becomes Intel's sixth-largest shareholder, but the investment does not include a board seat or a commitment to purchase semiconductors.
247 - Intel has secured a $2 billion capital injection from SoftBank Group, a move that marks a crucial financial boost for the US giant amid difficulties in the semiconductor sector. The information was released by Reuters on Monday (19).
According to the report, the investment makes the Japanese conglomerate the sixth-largest shareholder in Intel, consolidating SoftBank's strategy of expanding its presence in semiconductor and artificial intelligence assets — an agenda that also includes the Stargate megaproject, valued at US$500 billion. Despite the financial weight, the Japanese group will not have a seat on the board nor will it undertake any commitments to purchase chips from the American company.
Context of the operation and political pressures
The deal comes amid speculation about the possibility of the United States government acquiring up to 10% of Intel. The topic gained traction after a meeting between the company's new CEO, Lip-Bu Tan, and President Donald Trump, who even demanded Tan's resignation due to his previous ties to Chinese companies.
When questioned about potential state participation, Treasury Secretary Scott Bessent stated: “The last thing we’re going to do is acquire a stake and then try to force demand. It would be a conversion of subsidies already granted, perhaps with increased investments, to stabilize semiconductor production within the United States.”
The potential involvement of the US government reinforces the narrative that Washington seeks to reduce its dependence on Asia, particularly Taiwan, for the supply of advanced chips.
Internal crisis and competition
Intel is going through one of the most delicate periods in its recent history. In 2024, it recorded an annual loss of US$18,8 billion, its first since 1986. Meanwhile, rivals like AMD are advancing in strategic PC and server markets, widening the gap.
Furthermore, Intel's ambitious bet on chip foundry to compete with TSMC has yet to attract significant customers. This puts the company under pressure to revise its industrial and strategic plans, which have already consumed billions of dollars in investments.
The role of SoftBank
Despite speculation in some Western media outlets about a political alignment between SoftBank CEO Masayoshi Son and Trump, sources speaking to Reuters claim that the decision to invest in Intel is not linked to the White House.
In a statement, Son highlighted: “This strategic investment reflects our belief that advanced semiconductor manufacturing in the United States will expand even further, with Intel playing a key role.”
The transaction was structured through the initial public offering of Intel common stock at a price of $23 each—a slight discount compared to the previous closing price on the stock exchange ($23,66). In practice, this guarantees SoftBank a stake of approximately 2% in the company.
Market impact
The announcement had an immediate impact on the stock markets: Intel shares jumped about 7% on Monday, while SoftBank shares fell 4% in Tokyo trading. This movement reflects, on the one hand, renewed investor confidence in Intel's recovery and, on the other, caution regarding the high risks assumed by the Japanese holding company in its large-scale investments.
Future paths
Although the investment is substantial, analysts say that the amount alone is not enough to alter Intel's trajectory in the short term. Amir Anvarzadeh, strategist at Asymmetric Advisors, assessed: “The investment helps, but it's not what will change Intel's course. The most important thing is maintaining the good relationship that Son has with Trump.”
