SoftBank Backs Intel's Semiconductor Revival With $2B Bet

SoftBank Group Corp. has committed a $2 billion investment in Intel Corporation, marking a significant boost for the U.S. semiconductor giant. The transaction, which involves the purchase of Intel common stock at $23 per share, is structured under a definitive securities purchase agreement and is contingent upon customary closing conditions [1]. This investment reflects the ongoing alignment of both companies’ strategic goals, particularly their focus on advancing advanced semiconductor manufacturing and innovation within the United States [2].

Intel, the semiconductor industry leader, currently faces challenges in capitalizing on the global artificial intelligence (AI) boom. Despite its historical leadership in chip manufacturing, the company has struggled to secure major customers for its foundry business, which is crucial for expanding its market presence [3]. SoftBank’s investment is viewed as a strategic endorsement of Intel’s long-term vision and its potential role in shaping the future of U.S. semiconductor manufacturing and supply chains [1].

The investment also underscores SoftBank’s broader commitment to accelerating AI and digital transformation technologies. Over the past decade, SoftBank has made significant acquisitions and investments in key technology sectors, including its $32 billion acquisition of Arm in 2016 and its $6.5 billion purchase of Ampere Computing in 2025 [3]. These moves highlight SoftBank’s strategy to consolidate its position in the global AI and semiconductor ecosystems, supporting its long-term goal of enabling technological advancements across industries [2].

The transaction’s impact on Intel’s equity structure is notable, with the investment representing a 2% stake in the company, positioning SoftBank as the fifth-largest shareholder [3]. Intel’s stock price showed a positive reaction in after-hours trading, rising approximately 6% to $25 per share, despite closing at $23.66 during regular trading [3]. The investment arrives at a critical juncture for Intel, which experienced a 60% decline in its stock price in 2024—the worst performance in its over 50-year public trading history [3].

SoftBank’s Chairman and CEO, Masayoshi Son, emphasized that the investment aligns with the company’s broader vision to support next-generation infrastructure, cloud computing, and digital transformation. Son has long been a strategic partner for Intel, with a decades-long relationship between the two executives. Intel CEO Lip-Bu Tan expressed appreciation for the investment, which he described as a reaffirmation of confidence in the company’s strategic direction and its role in the U.S. technology sector [1].

This $2 billion investment is one of several recent major transactions in the semiconductor and AI sectors. Earlier this year, SoftBank joined with OpenAI and Oracle in the $100 billion initial funding commitment for the Stargate AI infrastructure project. Additionally, SoftBank led a record $40 billion investment in OpenAI, showcasing its growing influence in the AI landscape [3]. These transactions highlight the increasing convergence of semiconductor and AI technologies, with major stakeholders positioning themselves for long-term growth in the global digital economy [1].

Source:

[1] Intel Corporation (https://www.intc.com/news-events/press-releases/detail/1746/softbank-group-and-intel-corporation-sign-2b-investment)

[2] SoftBank Group (https://group.softbank/en/news/press/20250819)

[3] CNBC (https://www.cnbc.com/2025/08/18/intel-is-getting-a-2-billion-investment-from-softbank.html)

[4] Intel Newsroom (https://newsroom.intel.com/corporate/softbank-group-and-intel-corporation-sign-2b-investment-agreement)