SoftBank just threw struggling chipmaker Intel a $2 billion lifeline, paying $23 per share for common stock in a vote of confidence that sent Intel shares up 4% in after-hours trading. The investment comes as the U.S. government considers taking its own equity stake in America's last major chipmaker, highlighting Intel's critical role in national semiconductor strategy despite missing the AI boom.
SoftBank CEO Masayoshi Son is making a statement bet on American semiconductor manufacturing. The Japanese conglomerate's $2 billion investment in Intel at $23 per share represents more than just financial backing - it's a strategic wager on the future of advanced chip production in the United States.
The timing couldn't be more critical for Intel. The company has endured its worst year on public markets, with shares plummeting 60% in 2024 as competitors like NVIDIA and Taiwan Semiconductor captured the AI chip boom that Intel largely missed. Despite a modest 18% recovery this year, Intel remains under intense pressure to prove its foundry strategy can work.
"Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment," Intel CEO Lip-Bu Tan said in the official announcement. The personal relationship between Son and Tan, who took over as CEO in March after investor pressure forced out his predecessor, adds weight to what could be seen as a desperate fundraising round.
But SoftBank's investment thesis runs deeper than friendship. "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," Son explained. The bet aligns with SoftBank's broader AI infrastructure plays, including major investments in ARM Holdings and various AI startups through its Vision Fund.
