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

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Trump administration may secure 10% stake in Intel

A mockup of the Intel LGA 1851 motherboard socket
(Image credit: Intel)
  • 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 Intel’s largest shareholder, and provide a significant boost to Intel’s chip manufacturing, which has fallen behind competitors such as Nvidia and AMD.

The Trump Administration isn’t 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 Administration’s deal, some of Intel’s 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 Intel’s stock price rise by several percentage points following its announcement.

Intel’s 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 Intel’s 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 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.”

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Benedict Collins
Benedict Collins
Senior Writer, Security

Benedict has been writing about security issues for over 7 years, first focusing on geopolitics and international relations while at the University of Buckingham. During this time he studied BA Politics with Journalism, for which he received a second-class honours (upper division), then continuing his studies at a postgraduate level, achieving a distinction in MA Security, Intelligence and Diplomacy. Upon joining TechRadar Pro as a Staff Writer, Benedict transitioned his focus towards cybersecurity, exploring state-sponsored threat actors, malware, social engineering, and national security. Benedict is also an expert on B2B security products, including firewalls, antivirus, endpoint security, and password management.

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