Intel gets twin lifelines: SoftBank’s $2bn backing, and potential 10% stake from US government

After CEO Lip-Bu Tan met with President Donald Trump last week, Intel seems to be getting some breathing air amid struggles, as the chipmaker scored a $2 billion boost from SoftBank, which bought shares at $23 each, just below Intel’s $23.66 close, CNBC reports.

Meanwhile, the company could also be getting some fast money from the government, as Bloomberg says the Trump administration is considering a bold 10% stake in Intel.

Fast money from Trump on the way?
According to Bloomberg, if the Trump administration moves forward with a 10% stake in Intel, the U.S. government would become Team Blue’s largest shareholder.

At Intel’s current market value, that stake would reportedly be worth roughly $10.5 billion, close to the $10.9 billion grant Intel being promised under the CHIPS Act. Sources, however, warn that the exact size of the stake and whether the plan will actually proceed are still undecided, Bloomberg notes.

Notably, as Bloomberg points out, turning Chips Act grants into equity doesn’t bring extra funding—it just speeds up the payout. The aid was originally scheduled to be released in stages as Intel hit project milestones, with $2.2 billion already disbursed by January, the report adds. With the company having pushed its Ohio fab timeline beyond 2030, receiving the remaining subsidy remains uncertain.

It is also worth noting that as per Reuters, the U.S. has taken stakes in struggling firms before—most notably General Motors during the 2008 financial crisis, before exiting in 2013.

On the other hand, as per Commercial Times, a potential U.S. government stake in Intel could further complicate the already competitive semiconductor landscape. Analysts cited by the media outlet suggest President Trump may strongly urge major chipmakers to invest, potentially redirecting some orders to Intel for manufacturing.

The move highlights that semiconductors have become a national strategic priority. For foundry giant TSMC, it isn’t necessarily positive, with future challenges such as tariffs also on the horizon, the report adds.

SoftBank backs Intel with $2B investment
Commercial Times’ point of view gets a strong backing, as Intel secured a $2 billion boost from SoftBank on Monday, with the Japanese giant buying shares at $23 apiece. According to CNBC, the deal gives SoftBank a 2% stake, making it Intel’s fifth-largest shareholder. It marks a rare vote of confidence in the chipmaker, which has lagged in the AI boom while pouring billions into a foundry business still short on big customers, the report notes.

“Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment,” CEO Lip-Bu Tan said in the press release.

However, according to Reuters, SoftBank will only take an equity stake in Intel, without seeking a board seat or committing to purchase Intel’s chips.

An active participant in the Stargate project, SoftBank has also been expanding its presence in the chip market. As noted by CNBC, the company acquired chip designer Arm in 2016 for $32 billion; today, Arm is valued at nearly $150 billion, with its chips powering NVIDIA data center systems. In March, SoftBank announced a $6.5 billion acquisition of Ampere Computing, an AI chip designer founded by former Intel executive Renee James.

Source: TrendForce, Taiwan.