Intel gets $2 billion lifeline from Softbank, as chairman Masayoshi Son expresses confidence in American manufacturing

Intel

has received a lifeline with

SoftBank Group

’s $2 billion investment, paying $23 per share for new common stock. The deal comes as the

Trump administration

reportedly weighs taking a 10% stake in Intel worth approximately $10.4 billion, potentially making the US government the company's largest shareholder.Intel's stock surged more than 5% in after-hours trading following the SoftBank announcement, while SoftBank shares fell 5% in Tokyo trading. The government stake would likely involve converting Intel's $10.9 billion in

CHIPS Act

grants into equity, according to Bloomberg reports citing White House officials.

SoftBank doubles down on US semiconductor manufacturing

"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," said

Masayoshi Son

, SoftBank's chairman and CEO. The investment aligns with SoftBank's broader AI ambitions, including its $500 billion Stargate data center project with OpenAI and Oracle.Intel CEO Lip-Bu Tan, who previously served on SoftBank's board until 2022, expressed appreciation for Son's confidence in the company. Tan met with President Trump at the White House last week after Trump initially called for his resignation over past ties to China.

Intel's turnaround efforts gain political and financial support

Intel has struggled financially, recording an $18.8 billion annual loss in 2024, its first since 1986. The company has fallen behind

Taiwan Semiconductor Manufacturing

Co. in advanced chip production and Nvidia in AI chip design.At Intel's current market value, a 10% government stake would be worth roughly $10.4 billion, with the exact size still under discussion. The potential government investment represents part of Trump's broader strategy to build "government-backed national champions" in strategic industries.SoftBank's investment will make it Intel's sixth-largest shareholder with just under 2% equity stake. The dual investments signal renewed confidence in Intel's ability to compete in the AI-driven

semiconductor market

.