SoftBank has agreed to invest $2bn (£1.5bn) in Intel, giving the Japanese technology investor a 2% stake in the struggling US chip maker. The deal was announced on Tuesday, with SoftBank’s chief executive Masayoshi Son describing Intel as a “trusted leader in innovation”. Shares in Intel rose more than 5% in after-hours trading, while SoftBank’s Tokyo-listed shares fell by about 4%.
The investment comes as reports suggest Donald Trump’s administration is also considering taking a stake in Intel, possibly as high as 10%, according to Bloomberg. The White House did not respond to a request for comment. If the US government acquires a 10% stake, it could surpass asset manager Vanguard as Intel’s biggest shareholder, marking another intervention in a sector considered nationally strategic.
Lip-Bu Tan, who took over as Intel’s chief executive four months ago, said the company was “very pleased to deepen our relationship with SoftBank”. Trump initially called for Tan’s resignation, accusing him of ties to the Chinese Communist party, but after meeting him in Washington last week, the president praised the Intel boss for having “an amazing story”.
For SoftBank, the investment expands its US presence as the Japanese government pushes Trump to cut tariffs in exchange for investment. Trump previously announced in December that SoftBank would invest $100bn in the US economy over four years. The US president has also threatened tariffs of up to 100% on imported semiconductors, which could favour Intel as a domestic manufacturer.
Danni Hewson, an analyst at AJ Bell, described the investment as “one vote of confidence that Tan’s recovery effort can be successful”. She noted that Intel has been “left behind by the shift to AI” but its position as the last US manufacturer of high-end semiconductors gives it strategic significance, adding that “translating this into improved operational and financial performance is now the big challenge”.
