Intel draws $2B SoftBank investment as Trump team weighs US stake

New Delhi: Intel has found itself at the center of two major developments this week. SoftBank Group has signed a $2 billion (₹17,400 crore) investment deal in the chipmaker, while the Trump administration is in talks to take an equity stake that could make the US government Intel’s largest shareholder.

Both moves underline the high strategic value attached to Intel’s future, as Washington seeks to secure domestic semiconductor production and global investors continue to bet on the company’s turnaround. The announcements come at a time when Intel is facing leadership scrutiny, rising competition, and pressure to deliver on its US manufacturing commitments.

SoftBank Group confirmed a definitive agreement to buy $2 billion worth of Intel common stock at $23 (₹2,001) per share. Chairman and CEO Masayoshi Son said semiconductors remain the foundation of every industry, and Intel’s role in advanced manufacturing in the US makes it a key partner.

Intel CEO Lip-Bu Tan called the move a deepening of ties, noting his decades-long working relationship with Son. The deal still requires regulatory clearance but reflects how Intel continues to attract long-term institutional backing despite recent setbacks.

At the same time, reports surfaced that the Trump administration is evaluating converting part of Intel’s $10.9 billion (₹94,830 crore) Chips Act grants into equity, potentially giving the government close to a 10% stake. This would make Washington one of the largest shareholders in the company.

Intel also has access to up to $11 billion (₹95,700 crore) in federal loans under the 2022 Chips and Science Act. Trump officials have floated other options in recent months, including discussions with TSMC about running Intel’s fabs and outreach to the UAE for potential investments, though those efforts appear to have stalled.

Adding to the intrigue, President Donald Trump recently met Intel’s Lip-Bu Tan at the White House, days after publicly demanding his resignation. Trump described Tan’s "success and rise” as an impressive story, and said his Cabinet members would spend more time with the Intel chief before making recommendations.

The mixed signals highlight the delicate balance between political oversight, government funding, and Intel’s corporate independence. A government equity stake would mark one of the boldest moves yet in Washington’s strategy to secure the semiconductor supply chain.

Intel is now juggling global investments, new product launches, and government scrutiny while trying to regain its lead in advanced chipmaking. SoftBank’s capital infusion strengthens its financial position, but the possibility of Washington as a shareholder raises questions about governance and long-term strategy.