Hajra Naz
SoftBank Group is making a huge move. The Japanese conglomerate is investing $2 billion in Intel. It’s seen as a bold vote of confidence. It’s also a bet on the future of advanced semiconductor manufacturing in the U.S.
The deal was announced late Monday after markets closed. SoftBank will buy Intel common stock at $23 per share. Intel’s stock ended regular trading at $23.66. After the news, shares jumped more than 5% in after-hours trading.
A Strategic Bet on U.S. Chipmaking
SoftBank Chairman and CEO Masayoshi Son called the investment a “strategic commitment” to America’s chipmaking resurgence.
“This 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.
The deal comes at a critical time. The global semiconductor race is heating up. The U.S. is pushing harder to compete with China, Taiwan, and South Korea in chip design and production. Intel, once the leader in microprocessors, has slipped. It is now struggling to keep pace with Nvidia, AMD, and TSMC. The AI chip sector is booming, and Intel is fighting to stay relevant.
Read More: Intel CEO Pushes Back After Trump Demands His Resignation
SoftBank’s AI Play
SoftBank’s move goes beyond a simple investment. It signals a deep focus on the AI ecosystem. The company owns British chip giant Arm Holdings. It also bought a former Foxconn plant in Lordstown, Ohio. The plan is to turn it into a next-generation AI data center hub.
The $2B Intel deal highlights Son’s larger strategy. He wants SoftBank at the center of the AI infrastructure boom. Demand for high-performance chips is set to soar. Generative AI, cloud computing, and autonomous systems are driving adoption at record speed.
Intel’s Road to Reinvention
Intel is now led by CEO Lip-Bu Tan. The company is in a major restructuring. It has cut non-core units to focus on client chips, data centers, and foundry services.
- Earlier this year, Intel exited its auto architecture business. The move led to the layoffs of hundreds of staff.
- The company also announced job cuts in its Foundry unit. Headcount will shrink by 15–20% as part of cost-saving steps.
- Tan has pledged to bring Intel back as a semiconductor leader. His focus is on AI accelerators, advanced packaging, and U.S.-based fabs.
But the challenge is tough. Nvidia dominates AI training with its GPUs. TSMC holds over 50% of foundry capacity worldwide. SoftBank’s investment could give Intel both financial strength and needed credibility.
Politics, Tariffs, and the Chip War
The deal comes amid rising U.S.-China tech tensions. Last week, the Trump administration threatened new tariffs on chip imports. The goal is to boost local production under the CHIPS and Science Act.
Intel’s leadership is also in the political spotlight. President Trump demanded CEO Lip-Bu Tan’s resignation. He cited conflicts of interest but offered no proof. Reports also said the government discussed taking a stake in Intel to secure U.S. chipmaking.
What’s Next?
For Intel, the $2B SoftBank deal means more than money. It sends a signal to investors and rivals that Intel is still a key player in the global chip war. For SoftBank, it adds weight to its AI-first plan. The firm is aligning with chipmakers shaping future computing.
As the AI race speeds up, one thing is clear. Chips are no longer just tech parts. They are now the currency of global power.
