SoftBank's $2 Billion Investment in Intel

August 18, 2025

Key Insights

SoftBank has agreed to invest $2 billion in Intel, acquiring newly issued common stock at $23 per share, representing about a 2% stake in the chipmaker. ([ft.com](https://www.ft.com/content/97769020-6229-4f03-825b-89de4e4f3436?utm_source=openai))

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SoftBank's Strategic Investment in Intel

- Investment Details:
- SoftBank is acquiring newly issued common stock at $23 per share, representing about a 2% stake in Intel.

- Intel's Response:
- Intel’s CEO Lip-Bu Tan welcomed the investment, which boosted Intel's shares by 5% in after-hours trading.

- U.S. Government Involvement:
- The U.S. government is considering a direct stake in Intel after its $7.9 billion Chips Act subsidies, contributing to a 12% rise in Intel's stock over the past week.

- Strategic Implications:
- Despite the investment, concerns persist over Intel’s long-term strategy, with analysts noting that SoftBank’s funding may not resolve deeper structural issues or intensifying competition, especially from Taiwan’s TSMC.

Why It Matters:

This investment highlights SoftBank’s commitment to strengthening U.S. technology and manufacturing capabilities amid Intel’s financial and strategic challenges. ([ft.com](https://www.ft.com/content/97769020-6229-4f03-825b-89de4e4f3436?utm_source=openai))

Source: ft.com