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SoftBank, the Japanese tech giant, to invest $2 billion in US chipmaker Intel; check details

Upstox
By Upstox News Desk

2 min read | Updated on August 19, 2025, 08:45 IST

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SUMMARY

Intel share price: The investment, announced on Monday, is a lifeline for Intel and its ambitions to manufacture chips for external customers, a project into which the company poured billions of dollars under its previous CEO.

Intel shares

Under the deal, SoftBank will pay $23 per share for the Intel common stock. | Image: Shutterstock

Intel share price: Shares of Intel, the US computer chipmaker, surged on Tuesday, August 19, after Japanese technology investment giant Softbank said it was buying a $2 billion stake in the company.
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The investment, announced on Monday, is a lifeline for Intel and its ambitions to manufacture chips for external customers, a project into which the company poured billions of dollars under its previous CEO, said a Reuters report.

Under the deal, SoftBank will pay $23 per share for the Intel common stock, the companies said. SoftBank would become the sixth-largest investor in Intel, according to LSEG data.

SoftBank's investment will come via a primary issuance of common stock by Intel and, based on the US company's market capitalisation at close of trading on Monday, represent an equity stake of just under 2%, Reuters reported, quoting an Intel spokesperson.

SoftBank's shares slipped more than 5% on Tuesday following the announcement, while Intel surged 5.6% in after-market hours trading. "The Japanese company will only take an equity stake in Intel and will neither seek a board seat nor commit to buying Intel's chips, a person familiar with the matter said," the report said further.

Intel has been undergoing a painful restructuring as it tries to catch up in the AI chip game after being surpassed by rivals such as Taiwan Semiconductor Manufacturing Corp.

Intel reported another quarterly loss last month, and US President Donald Trump recently called for CEO Lip-Bu Tan’s resignation, though Trump toned down his rhetoric following a meeting with Tan last week, as per a report by Market Watch.

In a statement Monday, Tan said he was “pleased” with SoftBank’s investment, “and I appreciate the confidence [Son] has placed in Intel.”

Bloomberg News reported earlier on Monday that the US government was in talks to take a 10% stake in Intel. This comes after US President Donald Trump called for the resignation of company CEO Lip-Bu Tan earlier this month.
(With inputs from Reuters, Market Watch)
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