Softbank Backs Intel in $2 Billion Deal

Softbank, the Japanese conglomerate, has made a significant investment of $2 billion into Intel, a move aimed at bolstering the struggling chip maker. This investment serves as a clear signal to the Trump administration that both Intel and SoftBank are reinforcing their dedication to investing in advanced technology and semiconductor innovation within the United States.

Notably, Softbank has been actively involved in various tech investments, including backing AI chip designer GraphCore in the UK and acquiring ARM-based datacentre processor designer Ampere in the US. Additionally, the conglomerate is supporting Project Stargate in collaboration with OpenAI and Nvidia to construct a series of AI datacentres in the US, with the first one currently under development in Abilene, Texas, featuring Nvidia GB200 racks from Oracle.

Despite holding government contracts for its 18A foundry process, Intel has faced challenges in the design of AI chips for training and inference, struggling to secure commercial agreements. As a response to these setbacks, the company recently announced the closure of its automotive chip business, signaling a shift in focus towards other areas of semiconductor technology.

According to Masayoshi Son, Chairman & CEO of SoftBank Group, “Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. 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.”

Lip-Bu Tan, CEO of Intel, expressed his satisfaction with the deepening relationship with SoftBank, stating, “We are very pleased to deepen our relationship with SoftBank, a company that’s at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership. Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment.”