Make Intel Great Again! U.S and SoftBank Buys In, Shares Jump 10%

Intel is in trouble, but the U.S. government and SoftBank are preparing to make the company great again.

According to sources, the Trump administration is discussing acquiring about a 10% stake in Intel Corp. Under the U.S. Chips and Science Act, part or all of Intel’s grants from the U.S. government could be converted into equity. Under the Act, Intel is eligible to apply for up to $11 billion in loans.

At market open today, Intel’s shares jump around 10%.

Based on Intel’s current market capitalization, a 10% equity stake is worth about $10.5 billion. If the U.S. government approves the $11 billion loan and fully converts it into equity, it would hold a 10% stake and become Intel’s largest shareholder.

Intel has already applied for a $2.2 billion loan, but it remains unclear whether this will be counted toward any potential equity conversion.

In addition to the U.S. government, SoftBank will purchase $2 billion worth of Intel shares at $23 per share, acquiring about 87 million shares and a 2% stake, making it Intel’s sixth-largest shareholder.

SoftBank’s CEO Masayoshi Son has also held talks with Intel CEO Lip-Bu Tan about acquiring Intel’s faltering contract chipmaking business. The acquisition would align with Masayoshi Son’s vision of building a complete artificial intelligence infrastructure, spanning robotics, energy, and chip manufacturing.

A person familiar with the talks said that the U.S. Department of Defense’s prior investment in MP Materials encouraged SoftBank to increase its Intel stake, as the U.S. government has shown a stronger commitment to investing in critical strategic sectors.

For the Trump administration, reviving Intel’s high-end chip capabilities would bolster national security, reduce reliance on TSMC, and win voter support. Ensuring that U.S. companies like Intel manufacture advanced chips domestically has been a top priority for both the Biden and Trump administrations.

For SoftBank, Intel’s chip design business offers an attractive, high-margin opportunity, and Masayoshi Son is willing to bet on the revival of the former CPU giant.

Yet even with backing from two heavyweight investors, doubts remain as to whether Intel can reclaim its former glory. The tech pioneer lags behind TSMC in foundry chipmaking and trails Nvidia in chip design. New CEO Lip-Bu Tan is seeking to turn things around, but his efforts have mostly focused on cost-cutting and layoffs.

Last month, Lip said Intel would only expand advanced production capacity once customers committed to using its newer processes.

Under Trump’s reciprocal tariff negotiation agreements, many economies have pledged to make significant investments in the U.S. in the coming years. SoftBank’s investment in Intel marks the latest example of fulfilling those commitments.