SoftBank invests $2B in Intel; US gov't stake also reported
SoftBank is set to inject $2 billion into Intel, providing a crucial financial lifeline to the struggling chipmaker as it continues to implement cost-cutting measures and reduce its workforce by thousands. This significant investment, announced by SoftBank CEO Masayoshi Son, underscores the Japanese firm’s conviction that “advanced semiconductor manufacturing and supply will further expand in the United States.”
The investment immediately positions SoftBank as Intel’s sixth-largest shareholder, according to reports from The Wall Street Journal. This move aligns with SoftBank’s broader strategy in the United States, following its commitment made last year to invest $100 billion in the country during the four-year term of former President Donald Trump. SoftBank has already demonstrated its dedication to this pledge through collaborations such as Project Stargate with OpenAI, a massive $500 billion initiative aimed at developing a comprehensive network of data centers across the US.
This development for Intel comes amidst parallel reports suggesting that the US government is also considering taking a substantial stake in the company. Treasury Secretary Scott Bessent, speaking in an interview with CNBC, indicated that a potential 10 percent government stake in Intel would involve the conversion of existing grants. The primary objective, Bessent explained, is to “stabilize the company for chip production here in the US,” highlighting a concerted effort to bolster domestic semiconductor capabilities.
The combined force of SoftBank’s substantial private investment and the potential for direct government involvement signals a pivotal moment for Intel. As the company navigates a challenging period marked by significant spending reductions and widespread layoffs, these financial and strategic infusions underscore a shared commitment from both private and public sectors to secure and expand advanced chip manufacturing within the United States. This convergence of interests reflects a growing recognition of the critical importance of domestic semiconductor production for economic stability and national security.