TOKYO, Japan, August 19, 2025|SKY LINK TIMES
Intel has secured a much-needed $2 billion equity investment from Japan’s Soft Bank Group, marking a major vote of confidence in the struggling U.S. chipmaker. The deal, announced on Monday, will make SoftBank the sixth-largest Intel shareholder, according to LSEG data.
The investment comes at a critical time for Intel, which has been grappling with mounting losses and intense competition from rivals like AMD and Taiwan’s TSMC. In 2024, Intel posted an $18.8 billion annual loss — its first since 1986 — as it struggled to regain relevance in the rapidly growing artificial intelligence (AI) chip industry.
Masayoshi Son, Chairman & CEO of SoftBank Group Corp. said:
“Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.”
Lip-Bu Tan, CEO of Intel, said:
“We are very pleased to deepen our relationship with SoftBank, a company that’s at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership. Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment.”
Under the terms of the agreement, SoftBank will pay $23 per share of Intel common stock. The transaction is subject to customary closing conditions.
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SoftBank’s investment in Intel builds upon its long-term vision of enabling the AI revolution by accelerating access to advanced technologies that support digital transformation, cloud computing, and next-generation infrastructure.
SoftBank, which owns Arm Holdings Plc, has for decades tried to be a central player in AI, but has been largely a bystander to a global spending boom in hardware. Progress has been slower than expected at Stargate, a $500 billion endeavor with OpenAI, Oracle Corp. and Abu Dhabi fund MGX to build data centers in the US.
Intel’s Troubles & Turnaround Efforts
Intel has long dominated the PC and server semiconductor markets, but recent years of management missteps and delays in chip innovation have eroded its market share. Its costly attempt to establish a competitive chip manufacturing business has also fallen short, leaving it behind TSMC in the global race.
To regain its footing, Intel is now considering significant changes to its contract chip manufacturing model, in hopes of securing large-scale clients and positioning itself as the leading U.S. alternative to TSMC.
Details of the SoftBank Deal
SoftBank will acquire shares at $23 each, slightly below Intel’s Monday closing price of $23.66. The investment represents just under a 2% stake in the company, but crucially, SoftBank will not seek a board seat or commit to buying Intel chips.
Despite the modest stake, the move boosts SoftBank’s growing AI portfolio, which includes a $500 billion U.S. data center initiative called Stargate, as well as a recent $30 billion investment in OpenAI.
Following the announcement, Intel’s stock surged 5.6% in after-hours trading, while SoftBank shares slid over 5% in Tokyo trading.
U.S. Government Interest
The news also comes amid reports that the U.S. government may be considering a much larger move — potentially buying a 10% stake in Intel to strengthen domestic chipmaking and reduce reliance on overseas suppliers.
AI Investment Momentum
SoftBank’s Intel stake adds to its global AI strategy. Alongside Intel, SoftBank has teamed up with Taiwan’s Foxconn to manufacture data center equipment in Ohio for the Stargate project, underlining its massive bet on AI infrastructure.
For Intel, the SoftBank funding provides a financial lifeline and renewed investor confidence, as CEO Lip-Bu Tan navigates one of the toughest turnarounds in the company’s history.
