SoftBank has invested $20 billion in Intel

Japanese conglomerate SoftBank has agreed to invest $2 billion in Intel in a transaction described as a US commitment to advanced technology and semiconductors.

The agreement for SoftBank to purchase Intel common stock was announced Monday after the market was closed. SoftBank pays $23 per share of Intel common stock. Intel’s shares, which closed at $23.66, won over 5% in trading after business hours.

“Strategic investment reflects the belief that Intel plays a key role in the US, with advanced semiconductor manufacturing and supply being expanded further in the US,” Softbank Group Chairman and CEO Masayoshi Son said in a statement.

This investment provides verification to Intel, which has been covered in recent years by competitors such as Nvidia. SoftBank also reflects renewed interest, especially in the US, particularly in AI chips. SoftBank recently purchased the factory in Road Town, Ohio, owned by Foxconn, as part of its plan to build an AI data center.

Pioneered by new CEO Lip-Bu Tan, Intel is in the midst of a restructuring aimed at streamlining its semiconductor business and focusing on its core client and data center portfolio. Earlier this summer, Intel closed its automotive construction business and fired most of its staff. They also announced plans to reduce Intel Foundry Division Workforce from 15% to 20%.

Tan has also had to sail through landmines in political land in recent weeks as President Donald Trump called for his resignation due to conflicts of interests — accusations made without evidence — and his administration reportedly had debated to fund Inter.

The SoftBank-Intel deal comes days after the Trump administration threatened new tariffs on imported semiconductor chips as part of its strategy to boost domestic production.

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