SoftBank Group has agreed to invest $2 billion (£1.5 billion) in struggling US chip maker Intel, a move expected to give it a 2% stake in the business. The Japanese technology investor described Intel as a “trusted leader in innovation” and said the investment reflects their belief in the importance of advanced semiconductor manufacturing and supply in the US.
The deal comes amid reports that Donald Trump’s administration is also considering taking a stake in Intel, potentially up to 10%, according to Bloomberg. This could give the government significant influence over the company’s operations and direction.
Intel’s current CEO, Lip-Bu Tan, has been tasked with turning around the business after struggling to maintain its technological edge in recent years. The company has faced slow sales and continued losses due to its inability to compete with other players like Nvidia and Advanced Micro Devices.
Shares in Intel rose by over 5% in after-hours trading following the announcement of the SoftBank deal, while shares in Tokyo-listed SoftBank dropped about 4%. Danni Hewson, an analyst at AJ Bell, said SoftBank’s investment provides “one vote of confidence” that Tan’s recovery effort can be successful, but noted that Intel faces a significant challenge in translating its strategic significance into improved operational and financial performance.
Source: https://www.theguardian.com/technology/2025/aug/19/intel-japan-softbank-us-government