US government may be looking for 10% share in Intel as SoftBank invests $2 billion

In a major development for the chipmaker, the Trump administration is in discussions to acquire a significant stake in

Intel

, potentially making the US government its largest shareholder, a report has said. This plan is being considered just as Japanese tech conglomerate SoftBank Group has announced a $2 billion investment in the company.According to a report by Bloomberg, the Trump administration’s plan involves a specific approach: converting a portion of the grants made to Intel under the US CHIPS and Science Act into equity. The report says that this could result in a stake of approximately 10% for the US government, an investment estimated to be worth around $10.5 billion at Intel’s current market value. Reportedly, the grant money, which was originally intended to be disbursed over time as Intel meets project milestones, is roughly sufficient to fund this targeted holding. It is to be noted that the company is already slated to receive a combined $10.9 billion in grants for both commercial and military production, in addition to being able to draw on up to $11 billion in loans.While the plan is still under consideration and not yet finalized, it reflects the administration’s strategic interest in revitalizing American semiconductor manufacturing.

SoftBank to invest $2 billion in Intel

SoftBank, meanwhile, has announced a $2 billion investment in Intel’s common stock, priced at $23 per share, making it the fifth-biggest shareholder. The report says that SoftBank sees significant value in Intel’s chip design operations, which hold the promise of high margins, and views the investment as a strong vote of confidence. “Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment,” said Intel CEO Lip-Bu Tan in a statement, referring to SoftBank founder Masayoshi Son.This comes at a crucial time for Intel, which has struggled to fully capitalise on the artificial intelligence boom and has invested heavily in its manufacturing business without securing a major customer.