SoftBank Invests $2B, Becomes Intel's 5th-Largest Shareholder!

SoftBank Group Corp. and Intel have announced that they signed a final securities purchase agreement on August 19 (Tokyo time) / August 18 (U.S. time). Under the agreement, SoftBank will invest $2 billion in Intel common stock at $23 per share, subject to customary closing conditions.

According to FactSet data, this investment makes SoftBank Intel's fifth-largest shareholder. The funding comes as Intel faces financial challenges, struggling to fully capitalize on the AI-driven surge in advanced semiconductors while continuing to invest heavily in its manufacturing operations that have yet to secure key customers.

Following the announcement, Intel's shares briefly rose about 6% in after-hours trading, reaching $25.

SoftBank CEO Masayoshi Son said, “Semiconductors are the foundation of every industry. For over 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will continue to expand in the U.S., with Intel playing a central role.”

Intel CEO Lip-Bu Tan added, “We are excited to deepen our relationship with SoftBank, a leader in emerging technologies and innovation. Masa and I have collaborated closely for decades, and I appreciate his trust in Intel.”

The investment underscores both companies' commitment to advancing U.S.-based technology and semiconductor innovation. SoftBank's support aligns with its long-term vision of accelerating access to technologies that drive digital transformation, cloud computing, and next-generation infrastructure, fueling the AI revolution.

Notably, SoftBank's subsidiary Arm is the world's largest semiconductor IP provider, powering the majority of mobile processors and many IoT chips globally. Arm is also planning its own chip manufacturing, primarily targeting cloud customers.

Intel, meanwhile, is ramping up its foundry business and seeking to attract non-x86 chip clients like Arm. The company recently showcased its first non-x86 SoC based on its 18A process to appeal to Arm and RISC-V customers.

Bloomberg reports that the former U.S. administration is also considering acquiring a 10% stake in Intel, highlighting the semiconductor giant's strategic importance on a global scale.