Intel Corporation (INTC) announced two landmark investment deals this week, with SoftBank Group and the U.S. government both acquiring significant stakes in the chipmaker. The twin announcements have sent Intel’s stock price soaring, signaling renewed confidence in the company’s turnaround efforts and its central role in U.S. semiconductor manufacturing.
On Tuesday, SoftBank Group announced a $2 billion investment in Intel, purchasing common stock at $23 per share. SoftBank’s Chairman and CEO, Masayoshi Son, stated that the investment reflects his belief in the expansion of advanced semiconductor manufacturing in the United States and Intel’s critical role in this process. The deal positions SoftBank as Intel’s sixth-largest shareholder.
Following the SoftBank news, the Trump Administration confirmed a historic agreement to invest $8.9 billion in Intel common stock. This investment, which will be funded by converting existing grants from the CHIPS and Science Act and a separate Secure Enclave program into equity, is projected to give the U.S. government a 9.9 percent stake in Intel. This would make the government one of the company’s largest shareholders. The deal is part of the administration’s broader strategy to bolster domestic technology and manufacturing leadership.
The dual investments come at a crucial time for Intel, which has been grappling with financial challenges, including an $18.8 billion annual loss in 2024. The company has also faced stiff competition from rivals like NVIDIA and Taiwan Semiconductor Manufacturing Co. in the race for advanced chip production and the booming artificial intelligence market. The new capital and political backing are expected to provide Intel with a substantial boost as it continues its aggressive investment in expanding U.S. chipmaking facilities.
