Japan’s Softbank to Invest $2 Billion in Intel as Trump Administration Eyes 10% Government Stake

Intel Corporation is attracting significant investment interest from 2 major entities as the struggling chipmaker seeks financial stability. As per news reports, SoftBank Group is to invest $2 billion, while the Trump administration is reportedly discussing the acquisition of a 10% stake that would make the US government Intel's largest shareholder.

SoftBank's $2 Billion Investment Makes It the Sixth Largest Shareholder

SoftBank Group announced its commitment to purchase a $2 billion equity stake in Intel at $23 per share, representing just under 2% of Intel's equity through primary stock issuance, as per reports. The Japanese investment giant will become a top-10 shareholder and sixth-largest investor without seeking board representation or chip purchase commitments. 

SoftBank recognises Intel's strategic importance as the only US-based semiconductor manufacturer investing in leading-edge process R&D and advanced packaging on American soil.

Trump Administration Eyes 10% Stake Worth $10.5 Billion 

As per reports, the Trump administration is in discussions to acquire approximately 10% Intel's stake, worth roughly $10.5 billion at the current market valuation, potentially making the US government the company's largest shareholder. The investment would involve converting some or all of Intel's Chips and Science Act grants into equity, with Intel slated to receive a combined $10.9 billion in grants for commercial and military production.

Read More: Trump Tariffs: Frontloading Triggers Space Crunch on US-Bound Vessels Before August 27 Deadline!

Conclusion

Intel's attraction of $2 billion investment from SoftBank and potential $10.5 billion US government stake demonstrates strategic importance despite recording the first annual loss since 1986 of $18.8 billion in 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.