At a time when there are reports that US will take a 10pc stake in Intel, Japan’s Softbank has just agreed a $2bn investment in the troubled chip-maker.
SoftBank Group continues its investment in the US market, which it has been growing fast since Donald Trump returned to the White House. Back in January, CEO and chairman Masayoshi Son joined Open AI’s Sam Altman and Oracle’s Larry Ellison at the White House for a big investment announcement in Stargate, worth some $500bn, as part of a major push into AI.
It has been a torrid few weeks for Intel and, in particular its relatively new CEO, Lip-Bu Tan who has overseen major restructuring at the beleaguered chips player, which has included thousands of layoffs and cancelled investments in Poland and Germany. Now SoftBank have agreed a deal where SoftBank will pay $23 per share of Intel common stock in a $2bn transaction that is subject to the usual closing conditions.
“Semiconductors are the foundation of every industry,” said SoftBank’s Son. “For more than 50 years, Intel has been a trusted leader in innovation. 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.”
“We are very pleased to deepen our relationship with SoftBank, a company that’s at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing US technology and manufacturing leadership,” said Intel’s Tan. “Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment.”
The investment is happening at a time when the US administration is rumoured to be looking at taking a 10pc equity stake in Intel, after recent talks between Trump, his administration and Intel CEO Lip-Bu Tan. According to reports from Bloomberg among others, this would include transforming Intel’s grants from the US Chips and Science Act into equity. Intel is to receive more than $10bn in Chips Act grants, while it can also draw on up to $11bn in loans under the Biden-era law of 2022.
Japanese technology giant SoftBank invests in breakthrough technology and holds stakes in AI, smart robotics, IoT, telecommunications and clean energy technology providers, as well as a majority stake in UK-founded chips designer Arm.
Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.
