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1h ago

SoftBank Injects $2 Billion Into Intel as U.S. Weighs 10% Equity Conversion

Commerce officials are pushing to swap CHIPS Act grants for a non‑voting stake that could make the government Intel’s largest shareholder.

Intel processor and U.S. flag are seen in this illustration taken August 19, 2025. REUTERS/Dado Ruvic/Illustration
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Intel headquarters in Santa Clara, Calif.

Overview

  • SoftBank will buy newly issued Intel shares at $23 apiece for roughly a sub‑2% holding, making it a top‑10 shareholder in a primary $2 billion deal.
  • Bloomberg and other outlets report the White House is discussing converting about $10.9 billion of Intel’s CHIPS Act grants into roughly a 10% equity stake, a plan that remains unfinalized.
  • Commerce Secretary Howard Lutnick said the U.S. should receive equity for CHIPS funds and described any stake as non‑voting, while declining to detail a final structure.
  • The lifeline follows Intel’s steep 2024 downturn, including an $18.8 billion net loss, layoffs, factory delays and difficulty landing foundry customers such as NVIDIA, which relies on TSMC.
  • Intel shares jumped in after‑hours and premarket trading on the news, which came days after President Trump met CEO Lip‑Bu Tan following his earlier public call for Tan’s resignation.