Charles Esther
SoftBank has confirmed a $2 billion investment in Intel through the purchase of common stock.
The Japanese conglomerate will pay $23 per share, with the deal announced after markets closed on Monday.
Intel’s stock, which had closed at $23.66, surged over 5 percent in after-hours trading following the news.
Masayoshi Son Highlights Strategic Importance
Masayoshi Son, Chairman and CEO of SoftBank Group, described the move as a strategic investment in U.S. semiconductor growth.
He emphasized that Intel is expected to play a vital role in advancing chip manufacturing and supply across the country.
Boost for Intel Amidst Competitive Pressures
The deal provides a significant endorsement for Intel, which has struggled in recent years to keep pace with rivals such as Nvidia.
It also signals SoftBank’s renewed focus on the U.S. market, particularly in artificial intelligence chips.
Expansion of AI Data Centers in the U.S.
SoftBank recently acquired a Foxconn-owned factory in Lordstown, Ohio.
This facility will support the company’s broader plans to establish AI-driven data centers in the United States.
Intel’s Restructuring Efforts
Intel, now led by CEO Lip-Bu Tan, is currently restructuring its business to concentrate on data centers and core client portfolios.
Earlier this year, the company shut down its automotive architecture division and implemented staff layoffs.
It also announced plans to cut 15 to 20 percent of its Intel Foundry workforce.
Political and Trade Challenges
Intel’s leadership has faced political scrutiny, with President Donald Trump calling for CEO Tan’s resignation due to alleged conflicts of interest.
The Trump administration has also been weighing potential stakes in Intel.
The SoftBank-Intel partnership comes just days after new tariff threats on imported chips were announced, part of broader efforts to encourage domestic semiconductor production.
David Awoyode