Intel receives $2bn investment from SoftBank

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Chip maker still considering changes in its contract chip operations to attract clients

Trade

Lip-Bu Tan, Intel

Intel, once a dominant American chipmaker, has secured a crucial $2 billion equity investment from the SoftBank Group. The capital injection is intended to support Intel’s turnaround efforts amid fierce competition in the semiconductor sector. The deal makes SoftBank one of Intel’s top 10 shareholders. It highlights the focus on artificial intelligence, complementing investments such as the massive Stargate data centre project in the US.

Although the investment is a much-needed financial lifeline for Intel, analysts say it is unlikely to be a gamechanger on its own. Some believe the move is mainly intended to strengthen ties between SoftBank CEO Masayoshi Son and President Donald Trump, given reports of possible US government involvement with Intel and recent trade agreements with Japan.

SoftBank emphasised that it believes in the future growth of advanced semiconductor manufacturing in the US, with Intel playing a central role. The investment will be made through a primary issuance of common stock at a slight discount to Intel’s market price. This makes SoftBank Intel’s sixth largest investor.

Despite the good news for Intel, the challenges remain significant. The company faces fierce competition from rivals such as AMD and is struggling with the costly shift to contract chip manufacturing. Reportedly, Intel is considering strategic changes in its contract chip operations to attract major clients.

The investment follows a series of major announcements from SoftBank in 2025, including investments in OpenAI and funding for Stargate. The deal underscores SoftBank’s ongoing aggressive approach to investing in advanced technology and infrastructure.

Business AM

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