SoftBank Group agreed to invest $2 billion in Intel Corp., paying $23 per share for a roughly 2% stake in the beleaguered American chipmaker that has become a symbolic test case for U.S. semiconductor ambitions.
The Japanese conglomerate’s backing comes as Intel’s internal foundry business lost $13 billion in 2024 and the company continues searching for significant external customers to justify its manufacturing bet. Intel shares lost 60% of their value last year, their worst performance in the company’s more than half-century on the public market.
SoftBank’s investment makes it Intel’s fifth-largest shareholder, according to FactSet data. The timing appears strategic, coming as reports suggest the White House is discussing taking a stake in Intel, with the government’s possible stake at 10%.
Intel’s foundry strategy, designed to manufacture chips for external clients, has yet to deliver promised returns. The company acknowledged it has been “unsuccessful to date in securing any significant external foundry customers for any of our nodes” in recent regulatory filings.
CEO Lip-Bu Tan, who replaced ousted predecessor Pat Gelsinger in March, has implemented aggressive cost-cutting measures including a 15% workforce reduction. The SoftBank deal provides crucial capital but doesn’t address Intel’s fundamental challenge of proving its foundry model can compete with established players like Taiwan Semiconductor Manufacturing Co.
SoftBank’s bet represents confidence in American semiconductor manufacturing at a time when few are willing to back Intel’s turnaround story.
