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2d ago

SoftBank Puts $2 Billion Into Intel as U.S. Weighs 10% Government Stake

Commerce Secretary Howard Lutnick signaled support for swapping CHIPS Act awards for equity, leaving regulatory and governance details unresolved.

A smartphone with a displayed Intel logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration
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Intel processor and U.S. flag are seen in this illustration taken August 19, 2025. REUTERS/Dado Ruvic/Illustration
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Overview

  • SoftBank agreed to buy newly issued Intel shares at $23 each in a $2 billion deal that will give it roughly a 2% stake and make it a top-10 shareholder.
  • Multiple outlets report the administration is discussing taking about a 10% position by converting up to $10.9 billion in CHIPS Act grants into equity, a move that is not yet finalized and could make the U.S. the largest shareholder.
  • Lutnick told CNBC the government should receive an equity stake in exchange for CHIPS funds and described the potential holding as non‑voting, while suggesting similar approaches could be considered for other recipients.
  • Intel enters these talks after a difficult year that included a $18.8 billion net loss, a roughly 60% stock decline in 2024, workforce cuts, delayed fab projects and foundry setbacks under new CEO Lip‑Bu Tan.
  • President Trump reversed his public call for Tan’s resignation after a meeting last week, and Intel shares rebounded on reports of a possible U.S. stake and the SoftBank deal, with one session closing up about 7%.