Intel shares surged over 5% after Japanese tech giant SoftBank announced a $2 billion (£1.5bn) investment in the US semiconductor company.
SoftBank said it is paying $23 per share, underscoring its commitment to advanced technology and US-based semiconductor innovation. The investment comes as Intel seeks to reposition itself against rivals Samsung and TSMC, while strengthening its US manufacturing base.
The deal was revealed just hours after reports that the Trump administration is exploring a potential 10% stake in Intel by converting government grants into shares, a move intended to support the company’s $20 billion Ohio chip hub. The White House has yet to confirm the talks.
Analysts say a government stake could provide Intel with a critical lifeline, ensuring supply chain security and bolstering domestic chip production at a time of rising geopolitical tensions. “Washington’s agenda is clear: accelerate domestic manufacturing, cut reliance on Asia, and position Intel at the heart of AI and national security,” said Dan Sheehan of Telos Wealth Advisors.
SoftBank’s investment, meanwhile, was described as a “vote of confidence” in Intel’s turnaround strategy. The company remains one of the few US firms capable of producing advanced semiconductors at scale, though it has steadily lost ground to global competitors.
Last week, President Trump met Intel CEO Lip-Bu Tan, despite previously calling for his resignation over alleged ties to China. The meeting signaled the administration’s determination to keep Intel central to its tech and industrial strategy.
Some experts, however, caution that a direct government stake would mark an unusual and potentially risky precedent for private sector independence.
