Investment giant Softbank commits $2 billion towards a promising Intel future
In a historic agreement finalized in August 2025, the US government is set to acquire a 9.9% stake in Intel by purchasing 433.3 million primary shares at a discounted price. The move is aimed at supporting Intel's long-term business success and reinforcing American leadership in artificial intelligence (AI) and semiconductor production.
The investment is a strategic partnership that aligns with the US government’s goal to strengthen national security and secure semiconductor technology. The government will act as a passive shareholder with no board representation or governance rights, voting with Intel’s board on shareholder matters, except in limited circumstances.
The infusion of capital is expected to provide stability and permanence for Intel’s ongoing US investments. It will enable the company to pursue large-scale, long-term projects in semiconductor fabrication, making it less reliant on fluctuating market financing.
The investment also supports Intel’s efforts to innovate and advance semiconductor design, benefiting AI and computing sectors. With a focus on advanced chip technology inspired by Moore’s Law, Intel is poised to lead the way in semiconductor design and manufacturing.
The US government’s involvement solidifies support under the CHIPS Act by removing prior claw-back and profit-sharing provisions on previous grants. Moreover, the government holds a five-year warrant to purchase an additional 5% of Intel shares if Intel’s foundry business falls below 51% ownership, adding a conditional lever to maintain the company’s control over its manufacturing unit.
This initiative is part of broader US government efforts to boost domestic technological and manufacturing capabilities. The potential government stake may come from converting existing grants to Intel under the US CHIPS Act into equity.
SoftBank, a Japanese tech investment concern, has also made a $2 billion investment in Intel, reflecting their belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role. Both SoftBank and Intel framed the investment as a vote of confidence in Intel's ability to manufacture chips on US soil.
The US government's move to secure a stake in Intel is a significant step towards having sovereign semiconductor manufacturing capacity, a necessity for any nation to thrive in the modern digital age. The government's commitment to Intel demonstrates its dedication to strengthening the domestic chip industry and fostering a vibrant innovation ecosystem.
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