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Intel shares rose after SoftBank Group announced a $2 billion equity investment, while reports suggest the Trump administration is weighing a separate plan to acquire a 10% stake in the US chipmaker. The developments highlight Intel’s central role in semiconductor policy and market dynamics.
SoftBank will purchase Intel stock through a primary issuance valued at $23 per share, giving the Japanese investor a stake of just under 2%. According to Reuters, SoftBank will not seek a board seat or influence management decisions, indicating that its investment is intended as a financial commitment rather than a strategic partnership.
The move comes as Intel works to stabilize operations after years of setbacks, including delayed chip projects and intensified competition from Taiwan’s TSMC and South Korea’s Samsung. For Intel, the $2 billion injection provides financial flexibility as the company reassesses spending on projects such as its Ohio mega-factory, which has faced delays.
SoftBank has been expanding its semiconductor and AI investments, including a $30 billion pledge to OpenAI and its planned $500 billion Stargate data center project. Intel will become one of SoftBank’s top 10 holdings, further embedding the Japanese group in global technology infrastructure.
Hours after SoftBank’s announcement, Bloomberg reported that the Trump administration may convert up to $10.9 billion in Chips and Science Act subsidies into equity. At Intel’s current market valuation, this would represent a 10% government stake, potentially making Washington the company’s largest single shareholder.
A White House spokesperson declined to confirm the report, saying the matter should be regarded as speculation unless formally announced. Yet, analysts have suggested a switch would represent a dramatic change in US industrial policy, as there is increasing concern regarding the supply chain of semiconductors.
The US government has taken similar steps in recent months, including revenue-sharing agreements with NVIDIA and AMD tied to China sales and an equity stake in rare-earth producer MP Materials. An intellectual investment in Intel would take this a step further and bring government interests directly into some of the technology industries.
Intel’s importance to the US. One of the major reasons behind Washington's interest is national security. The company is also one of the few American companies capable of producing advanced semiconductors in large quantities, which are required in artificial intelligence systems and defense technologies. There is also a political factor in the Ohio factory project, as Vice President JD Vance is fighting to speed up its completion.
The combination of SoftBank’s financial backing and possible US Government equity support places Intel in a unique position. On one hand, these commitments may give Intel the stability and resources to rival Asian chipmakers. Conversely, there is still concern about Intel's independence in case political considerations start to dictate its corporate strategy.
According to Yahoo Finance, Intel’s share price rose almost 10% in after-hours trading on August 19, 2025, following SoftBank’s announcement. The shares of Tokyo-listed SoftBank plummeted by 4 percent after the news, highlighting the deal's influence on the wider market.
