Softbank Group Corp agreed to buy US$2 billion of Intel Corp stock, a surprise deal to shore up a struggling US name while boosting its own chip ambitions.
The Japanese company, which is adding Intel to an investment portfolio that includes artificial intelligence (AI) linchpins Nvidia Corp and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), is to pay US$23 a share — a small discount to Intel’s last close.
Shares of the US chipmaker, which would issue new stock to Softbank, surged more than 5 percent in after-hours trading. Softbank’s stock fell as much as 5.4 percent on Tuesday in Tokyo, its most since April.
Photo: Reuters
Softbank, which owns Arm Holdings PLC, has for decades tried to be a central player in AI. For Intel, the Tokyo-based company’s move delivers a strong vote of confidence in a storied US chipmaker that has struggled to remain relevant in the AI sphere.
Intel aims to prove it can be a technology leader again after falling behind TSMC in contract chipmaking and Nvidia in chip design. Intel chief executive officer (CEO) Lip-Bu Tan (陳立武) met with US President Donald Trump at the White House last week, helping lay the groundwork for discussions about ways to rescue Intel.
The Santa Clara-based company held talks with the Trump administration about a deal that would potentially turn the US into its biggest backer. Officials have discussed taking a stake of about 10 percent in the chipmaker, Bloomberg News reported on Monday.
For Softbank, buying Intel stock expands its US footprint at a time when Tokyo is pressing Washington to cut tariffs in exchange for investments in the US.
However, the timing of the deal — days after Trump and Tan’s meeting — is spurring fears that politics might have played a part.
“If it’s political, then it’s not profit-motivated,” Asymmetric Advisors Pte Ltd strategist Amir Anvarzadeh said. “Investing in Intel to appease Trump is perhaps not seen as good business.”
In announcing its investment in Intel, Softbank paid tribute to the chip pioneer’s history.
“For more than 50 years, Intel has been a trusted leader in innovation,” Softbank founder Masayoshi Son said in a statement. “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 Tan, a chip industry veteran who took the helm this year, has invested in start-ups alongside Son and spent years on Softbank’s board as an independent director before resigning in 2022.
“I appreciate the confidence he has placed in Intel with this investment,” Tan said.
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