SoftBank is betting big on Intel, folks, investing $2 billion into the American chipmaker in a move that shows just how high the stakes have become in the semiconductor race. The Japanese conglomerate signed a definitive securities purchase agreement to acquire Intel common stock at $23 per share, pending the usual closing conditions.
This is more than a financial move. Both companies framed it as a commitment to strengthening semiconductor innovation in the United States. For Intel, which has been working to regain ground in manufacturing, the funding and vote of confidence arrives at an important moment.
SoftBank founder Masayoshi Son explained his reasoning, calling semiconductors “the foundation of every industry” and praising Intel’s decades of innovation. He added that the investment reflects his belief that advanced chip manufacturing will continue to expand in the US, with Intel playing a central role.
Intel CEO Lip-Bu Tan welcomed the investment, saying it highlights “shared goals of bolstering US tech leadership.” He pointed to his long relationship with Son and described SoftBank as deeply connected to emerging technology and innovation.
SoftBank has a track record of bold moves, from backing telecom ventures to owning ARM at one point. Its focus on AI and semiconductors aligns with Son’s long-standing vision of an AI-driven future. The company said this deal is part of a broader strategy to accelerate access to technologies that support digital transformation, cloud computing, and next-generation infrastructure.
Meanwhile, separate reports indicate that the Trump administration is also exploring the possibility of acquiring a 10 percent equity stake in Intel. These discussions are said to involve converting some or all of Intel’s nearly $11 billion in Chips and Science Act funding into shares, potentially making the government one of Intel’s largest shareholders.
This follows heightened scrutiny of Intel’s leadership, especially after President Trump publicly called for CEO Tan’s resignation over his past ties to Chinese firms. The possibility of a government ownership stake comes amid efforts to strengthen US semiconductor manufacturing and reduce reliance on foreign competitors.
Financial markets have already reacted. Intel shares fell between 3 percent and 4 percent following the news of the potential government stake. Critics argue that turning grant funding into equity blurs the line between public support and ownership, raising concerns about the independence of a strategic tech firm. Supporters say it would protect taxpayer investments and could fast-track critical factory buildouts.
If both the SoftBank investment and the US government stake move forward, Intel will find itself navigating a dual support structure… private and public. SoftBank’s funding underscores confidence in Intel’s future, while a government stake would represent a major escalation in national tech strategy, possibly reshaping Intel’s governance and priorities.
