Intel saved? Softbank is investing $2 billion in beleagured chipmaker - and the Trump administration may still take a stake too

Date:
Tue, 19 Aug 2025 12:49:26 +0000

Description:
SoftBank has secured a $2 billion deal with Intel, and the Trump Administration might also want a slice of the pie.

FULL STORY ======================================================================SoftBank
has announced a $2 billion investment deal with Intel The Trump Administration may also be looking to strike a deal Intel's stock price has jumped as a result of both announcements

After several recent turbulent exchanges between President Trump and Intel
CEO Lip-Bu Tan , the US Government may be about to take a 10% stake in 10% in Intel Corp.

The move would see the US Government become Intels largest shareholder, and provide a significant boost to Intels chip manufacturing, which has fallen behind competitors such as Nvidia and AMD.

The Trump Administration isnt the only party looking for a cut of Intel, with SoftBank Group announcing a securities purchase agreement that would see SoftBank purchase $2 billion worth of Intel shares. Intel in demand

While the plans are not yet concrete, there are rumblings (per Bloomberg ) that as part of the Trump Administrations deal, some of Intels grants under the 2022 U.S. CHIPS and Science Act could be converted into equity.

Intel received $7.9 billion for domestic investment, and an additional $3 billion to boost manufacturing under the Biden-era legislation.

However, there has been no official comment from the government on the potential deal with Intel.

Trump recently demanded the "immediate resignation" of the Intel CEO,
accusing Lip-Bu Tan of being "highly conflicted" due to his investments in Chinese companies. A later meeting between the two saw Intel's stock price jump by 7% after rumors of a potential deal emerged.

The SoftBank deal saw Intels stock price rise by several percentage points following its announcement.

Intels stock price has been slipping over the past several years after the chip manufacturer failed to capitalize on the AI demand for semiconductors, with former Intel CEO Pat Gelsinger being forced out by Intels board after a loss of confidence.

Masayoshi Son, Chairman & CEO of SoftBank, said , 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.

Intel CEO Lip-Bu Tan also commented on the deal, stating, We are very pleased to deepen our relationship with SoftBank, a company thats 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. You might also like Take a look at the best AI tools and best AI writers Trump U-turns on Intel CEO once again following White House visit - what next for Lip-Bu Tan? These are our picks for the best cloud storage



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Link to news story: https://www.techradar.com/pro/intel-saved-softbank-is-investing-usd2-billion-i n-beleagured-chipmaker-and-the-trump-administration-may-still-take-a-stake-too


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