AWS Launches New Nova AI Models And a Service That Gives Customers More Control

SoftBank Makes $2B Investment in Intel, Boosting US Semiconductor Growth

Japanese tech giant SoftBank makes $2B investment in Intel, signaling strong confidence in the future of U.S. semiconductor innovation. The move highlights the company’s focus on advanced technologies, including AI chips, and reinforces Intel’s role in the global chip market.

Image Credits:Alex Wroblewski/Bloomberg / Getty Images

The deal, announced Monday after markets closed, involves SoftBank purchasing Intel common stock at $23 per share. Intel shares, which closed at $23.66, surged over 5% in after-hours trading following the news.

SoftBank’s Strategic Vision for Intel

SoftBank Group Chairman and CEO Masayoshi Son emphasized that this $2B investment in Intel “reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.” The investment demonstrates SoftBank’s renewed interest in U.S. technology, particularly in AI-focused hardware.

Recently, SoftBank acquired a Foxconn-owned factory in Lordstown, Ohio, as part of plans to build AI data centers. This reinforces the company’s commitment to semiconductor and AI development on U.S. soil.

Intel’s Restructuring and Future Outlook

Intel, under the leadership of new CEO Lip-Bu Tan, is undergoing significant restructuring. The company aims to streamline operations and focus on its core client and data center businesses. Earlier this year, Intel closed its automotive architecture division and laid off most of its employees.

Additionally, the company plans to reduce the Intel Foundry division workforce by 15–20%, signaling a shift toward more strategic investments and technological innovation.

Market Impact and Investor Confidence

SoftBank’s $2B investment in Intel provides a strong vote of confidence in the company’s future. After recent struggles to keep pace with competitors like Nvidia, Intel now benefits from both capital support and global validation.

The move also comes amid political scrutiny, with recent calls for CEO Tan’s resignation and government discussions about a potential stake in Intel. Despite these challenges, SoftBank’s commitment signals stability and long-term growth potential.

SoftBank makes $2B investment in Intel, strengthening U.S. semiconductor leadership and fueling AI chip development. This strategic partnership positions Intel for innovation while giving investors renewed confidence in the company’s growth trajectory.