NEW YORK, SoftBank has agreed to invest US$2 billion in Intel, a move aimed at supporting the US chipmaker while advancing SoftBank’s own semiconductor ambitions.
The Japanese conglomerate is adding Intel to a portfolio that already includes AI leaders Nvidia and Taiwan Semiconductor Manufacturing Co (TSMC). SoftBank will pay US$23 per share, slightly below Intel’s most recent closing price. Intel will issue new shares for the deal. Following the announcement, Intel’s stock jumped over 5% in after-hours trading, while SoftBank shares fell as much as 5.4% in Tokyo, marking the largest drop since April.
Intel is aiming to prove it can be a technology leader again after falling behind in the chip industry.
SoftBank, owner of Arm Holdings, has long sought a central role in AI but has largely remained on the sidelines amid a global hardware spending boom. Its US$500 billion Stargate project with OpenAI, Oracle, and Abu Dhabi fund MGX, aimed at building data centres, has progressed more slowly than expected. Similarly, Masayoshi Son’s “Izanagi” project to develop energy-efficient chips to compete with Nvidia has yet to produce a market-ready product.
“It’s hard to see how much this investment contributes to either SoftBank’s value or short-term earnings,” said Tomoaki Kawasaki, senior analyst at Iwaicosmo Securities.
For Intel, the investment signals strong confidence from a global player, as the US chipmaker works to regain its position in the AI space after falling behind TSMC in contract manufacturing and Nvidia in chip design. Intel CEO Tan Lip-Bu recently met with former US President Donald Trump to explore potential government support, including a possible 10% stake in the company.
SoftBank’s purchase also expands its US presence amid Tokyo’s push for Washington to reduce tariffs in exchange for foreign investment. The deal follows SoftBank’s acquisition of Foxconn Technology’s electric vehicle plant in Ohio, which could accelerate the Stargate project. Other major Asian players, including TSMC and Samsung Electronics, are also investing billions in US manufacturing.
The timing of SoftBank’s investment—shortly after the Trump-Tan meeting—has raised questions about potential political motivations. “If it’s political, then it’s not profit-motivated,” said Amir Anvarzadeh, Japan equity strategist at Asymmetric Advisors. “Investing in Intel to appease Trump may not be seen as sound business.”
In a statement, Masayoshi Son praised Intel’s legacy. “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 continue to grow in the US, with Intel playing a critical role.”
Tan, a chip industry veteran who joined Intel as CEO this year, expressed gratitude for the investment. He previously served on SoftBank’s board and has invested in startups alongside Son. “I appreciate the confidence he has placed in Intel with this investment,” Tan said.
