SoftBank Invests $2 Billion in Struggling Intel Amid $18.8 Billion Loss

Intel has secured a $2 billion equity investment from Japan's SoftBank Group, making SoftBank the sixth-largest shareholder with just under a 2% stake. This capital injection comes as a lifeline for Intel, which reported an $18.8 billion loss in 2024 and is struggling to compete in the semiconductor market against rivals like TSMC and AMD. SoftBank CEO Masayoshi Son emphasized the investment as a sign of confidence in Intel's role in advancing U.S. semiconductor manufacturing, aligning with SoftBank's broader AI initiatives. Separately, the Trump administration is reportedly considering acquiring up to a 10% stake in Intel under the CHIPS Act, which would require over $10 billion in investment and potentially make the government the largest shareholder. Intel CEO Lip-Bu Tan, who recently met with President Trump, expressed optimism about the partnership with SoftBank and the government's interest, highlighting a shared commitment to U.S. technology leadership. The investments reflect a strategic push to bolster domestic semiconductor production and reduce dependence on foreign suppliers amid a critical industry turnaround.