Japanese conglomerate SoftBank has agreed to make a $2 billion investment in Intel in a deal described as a commitment to advanced technology and semiconductors in the United States.
The agreement, in which SoftBank will buy Intel common stock, was announced Monday after markets closed. SoftBank will pay $23 per share of Intel common stock. Shares of Intel, which closed at $23.66, popped more than 5% in after-hours trading.
SoftBank Group Chairman and CEO Masayoshi Son said in a statement that the “strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.”
The investment provides validation for Intel, which has been overshadowed in recent years by competitors like Nvidia. It also reflects SoftBank’s renewed interest in the U.S., particularly around AI chips. SoftBank recently purchased a factory in Lordstown, Ohio, owned by Foxconn, as part of a plan to build AI data centers.
Intel, steered by new CEO Lip-Bu Tan, is in the midst of a restructuring that aims to streamline the semiconductor business and focus on its core client and data center portfolio. Earlier this summer, Intel shuttered its automotive architecture business and laid off most of its staff. It also announced plans to reduce its Intel Foundry division workforce between 15% and 20%.
Tan has also had to navigate political landmines in recent weeks as President Donald Trump called for his resignation due to conflicts of interest — an accusation that was made without evidence — and his administration reportedly had discussions to take a stake in Intel.
The SoftBank-Intel deal comes just days after the Trump administration threatened new tariffs on imported semiconductor chips as part of his strategy to boost domestic production.
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