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Intel Secures $2 Billion Investment From SoftBank

ByHilary Ong

Aug 21, 2025

Intel Secures $2 Billion Investment From SoftBank

Intel and SoftBank announced on Monday that the Japanese conglomerate will invest $2 billion in the U.S. chipmaker. SoftBank is purchasing Intel’s common stock at $23 per share, just below Monday’s closing price of $23.66. After the news, Intel shares rose about 6% in extended trading, reaching $25.

The deal gives SoftBank roughly a 2% stake in Intel, making it the company’s fifth-largest shareholder, according to FactSet. The move represents a show of confidence in Intel, which has lagged behind rivals in the artificial intelligence semiconductor race and continues to spend heavily on its manufacturing ambitions without landing a major customer.

Leadership and Market Pressure

Intel CEO Lip-Bu Tan welcomed the backing, highlighting his long-standing relationship with SoftBank founder Masayoshi Son. “Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment,” Tan said.

Tan took over in March following the ouster of former CEO Pat Gelsinger in December. Intel’s stock had collapsed by 60% last year, the steepest drop in its history, but has since rebounded 18% in 2025 as of Monday’s close.

Intel’s position as the only American firm capable of producing the most advanced chips has made it a major subject of political discussion. Last week, Tan met with President Donald Trump, who had previously called for his resignation. Reports indicate that the U.S. government is weighing an equity stake in Intel to strengthen domestic chip production.

Still, Intel’s foundry business has yet to secure significant customers. The company said in July that it would hold off on further investment in its foundry until orders materialize.

SoftBank’s Expanding Chip Portfolio

SoftBank has been steadily growing its presence in the semiconductor and AI sectors. In 2016, it acquired Arm for about $32 billion, and the company is now worth nearly $150 billion. Earlier this year, SoftBank announced plans to buy chip designer Ampere Computing for $6.5 billion.

The group has also made huge commitments to AI infrastructure. In January, SoftBank joined President Trump’s Stargate project with OpenAI and Oracle, pledging as much as $500 billion over four years. Two months later, SoftBank led a $40 billion investment into OpenAI, the largest private tech deal ever recorded.

“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,” Son said in a statement.

Author’s Opinion

While SoftBank’s $2 billion provides a symbolic boost, Intel’s real challenge is execution. The company is still far behind in AI-focused chips, and without a breakthrough in its foundry business, no amount of outside investment will guarantee success. What Intel needs most is not more cash but reliable partners and a clear technology roadmap that can win customers in a market dominated by Nvidia, TSMC, and Arm.


Featured image credit: MIKI Yoshihito via Flickr

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Hilary Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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