Intel Corporation today disclosed a $2 billion investment from SoftBank Group Corp. This is the biggest deal in the semiconductor colossus’ history! This shift follows upon a recent leadership change. Recognizing the need for new leadership after ousting CEO Pat Gelsinger in December, TSMC Alumni Lip Bu Tan officially became CEO in March replacing Gelsinger.
Intel is apparently interested in an equity stake in SoftBank as part of the investment deal. Japan’s SoftBank has been causing quite a stir in the tech sector. We should remember that SoftBank—always on the lookout for a next big thing—had previously announced a $40 billion investment in OpenAI. They’re in the process of buying chip designer Ampere Computing for $6.5 billion this March. With a market cap of close to $150 billion at the time of its announcement, Intel’s significance in the semiconductor industry cannot be overstated.
Intel has indicated that it will be waiting to find customers before investing further into its foundry. The careful rollout is in line with the company’s strategy of making sure that demand matches its capacity to produce them. Intel’s stock price went up by 18% across 2025, showing that Wall Street liked the announcement.
Tan’s recent meeting with the President Donald Trump drew demands for his ouster before Tan himself had even left. September 26, 2023 Bill is seeing huge long-term potential. Despite these challenges, he’s hopeful about Intel’s prospects and the continuing partnership with SoftBank.
“Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment,” – Intel CEO Lip-Bu Tan
Masayoshi Son, SoftBank’s chairman and CEO, released this statement on the occasion of making the investment. He praised its strategic importance for the U.S. semiconductor landscape.
“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,” – Masayoshi Son
The U.S. government is considering taking an equity stake in Intel, signaling the administration’s interest in bolstering domestic semiconductor manufacturing. Meanwhile, global demand for chips is through the roof. Either way, Intel’s partnership with SoftBank should strengthen Intel’s competitive hand and help drive transformational innovation.