Japanese-based multinational conglomerate SoftBank and US-based chipmaker Intel have signed a definitive securities purchase agreement, under which SoftBank will make a $2 billion investment in Intel common stock.
In a joint statement, the organisations say the investment comes as they deepen their commitment to investing in advanced technology and semiconductor innovation in the US.
Reuters reports that the equity investment is a lifeline for the once-iconic US firm, which has struggled to compete after years of management blunders left it with virtually no foothold in the booming artificial intelligence (AI) chip industry.
The deal comes as the global semiconductor market is experiencing strong growth, with sales reaching $630.5 billion in 2024 and a projected $700.9 billion in 2025, according to the Semiconductor Industry Association.
It says this growth is driven by increasing demand in areas like AI, cloud computing and advanced consumer electronics.
According to Companies Market Cap, Nvidia ($4.3 trillion) is currently leading the global semiconductor market, with Intel ($110 billion) sitting at number 17.
Trump wants a stake
Meanwhile, the White House reportedly confirmed on Tuesday that the Trump administration is negotiating a deal under which the US government could acquire a 10% stake in chipmaker Intel.
“The president [Donald Trump] wants to put America’s needs first, both from a national security and economic perspective," BBC quotes White House press secretary Karoline Leavitt as saying.
It notes the highly unusual move could help Intel as it struggles to compete with rivals like Nvidia, Samsung and TSMC, particularly in the booming AI chip market.
“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,” says Masayoshi Son, chairman and CEO of SoftBank.
Says Lip-Bu Tan, CEO of Intel: “We are very pleased to deepen our relationship with SoftBank, a company at the forefront of so many areas of emerging technology and innovation, and shares our commitment to advancing US 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.”
Under the terms of the agreement, SoftBank will pay $23 per share of Intel common stock. The transaction is subject to customary closing conditions.
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