SoftBank’s $2 Billion Bet on Intel and America’s Chip Future

SoftBank has shaken up the semiconductor market with a bold $2 billion bet on Intel, signaling that the Japanese giant still believes the American chipmaker has a critical role to play in the future of advanced manufacturing. The investment, priced at $23 a share, translates into nearly 87 million Intel shares, with the company’s stock having closed at $23.66 before the announcement.

This fresh capital injection comes at a time when Intel has struggled to regain its once-dominant footing against rivals like AMD and Nvidia. By issuing new shares to SoftBank, Intel not only gains a powerful backer but also a strong vote of confidence in its U.S.-based fabrication ambitions.

SoftBank framed the move as a long-term strategic investment, noting that the United States is expanding its semiconductor production capacity and that Intel is expected to be central to that push: “This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.”

Meanwhile, speculation over a potential U.S.

government stake in Intel has complicated the outlook. Reports suggest the Trump administration may convert part of the $7.9 billion in CHIPS Act grants Intel has already received – along with access to $11 billion in loans and another $3 billion under Pentagon programs – into equity. Such a move would put Washington in the unusual position of being a shareholder in one of the world’s largest chipmakers. If the entire package were converted, a 10 percent stake in Intel would be valued around $10 billion, meaning the government would need to add roughly $2.1 billion more.

Despite uncertainty, investor sentiment has surged. Intel’s shares jumped 5 percent in after-hours trading and are up nearly 20 percent over the past week. For critics, that rally is just more evidence that government support and deep-pocketed allies like SoftBank are the only lifelines keeping Intel competitive. For optimists, it’s the comeback story of a legacy giant finally ready to fight back.