SoftBank Acquires 2% Intel Stake As US Government Considers 10% Investment

Japanese technology investment firm SoftBank has announced a $2 billion investment in Intel, acquiring approximately a 2% stake to support the US chipmaker’s turnaround efforts amid tough competition from rivals like Nvidia and TSMC. This investment reflects SoftBank’s confidence in Intel’s role in expanding advanced semiconductor manufacturing in the United States. The move follows President Donald Trump’s recent call for Intel CEO Lip-Bu Tan to resign, though Trump met with Tan shortly after and discussions shifted toward potential government support. The Trump administration is reportedly considering converting grants from the US Chips and Science Act into equity, potentially taking a 10% stake in Intel to provide about $10 billion in capital. Intel has been undergoing significant restructuring, including reducing its workforce from nearly 100,000 to 75,000 employees, as it seeks to regain competitiveness in the AI chip market. SoftBank’s investment is part of a broader push to deepen semiconductor and AI-related investments in the US, including involvement in a $500 billion AI project with OpenAI and Oracle.