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1h ago

SoftBank Puts $2 Billion Into Intel as White House Weighs 10% Equity Stake

Commerce Secretary Howard Lutnick said CHIPS Act funds should be converted into non‑voting equity, signaling an unprecedented approach to rescuing the chipmaker.

Intel headquarters in Santa Clara, Calif.
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 new Intel shares at $23 each, a primary issuance that gives it just under a 2% stake and a top‑10 holder position.
  • Talks described by Bloomberg involve converting roughly $10.9 billion of Intel’s CHIPS grants into stock for a stake of about 10%, with no final decision announced.
  • Intel has struggled with losses and market share erosion, posting an $18.8 billion loss in 2024 and cutting about 15% of jobs as its foundry push lags rivals such as TSMC.
  • Intel shares climbed in post‑announcement trading, while SoftBank slipped roughly 4% in Tokyo.
  • The potential government stake follows President Trump’s meeting with CEO Lip‑Bu Tan last week after earlier calls for Tan’s resignation, with the White House stressing that no agreement has been finalized.