The latest updates indicate that the US government is considering a direct stake in chip giant Intel, with a potential stake of up to 10%, valued at around $10.5 billion. At the same time, Japanese conglomerate SoftBank has announced a $2 billion investment in Intel, injecting new momentum into the company undergoing transformation pressures.
According to sources cited by Bloomberg, the Trump administration is in talks with Intel, considering approving the $10.9 billion subsidies and loans under the “Chips and Science Act” to convert a portion or all of it into equity.
If the plan comes to fruition, the government would hold approximately 10% of Intel’s shares, becoming the largest single shareholder, surpassing the current largest shareholder, BlackRock Fund Advisors (holding about 9%).
Insiders indicate that this plan is still in the early stages of negotiation, with specific terms undecided, but it demonstrates the US’s desire to accelerate domestic chip manufacturing and reduce reliance on Asian supply chains.
Following the news, Intel’s stock price briefly dropped by nearly 3.7%, then rebounded over 4% in after-hours trading on Monday. Market reactions show that investors are concerned about potential earnings dilution and policy intervention risks stemming from the government’s stake.
According to a joint statement released by Intel and SoftBank on Tuesday, SoftBank will purchase common stock at $23 per share, totaling $2 billion and representing approximately 2% equity. The transaction is subject to completion of closing procedures. The market responded positively to the news, with Intel’s stock price surging by 5% after-hours.
SoftBank’s Chairman and CEO, Masayoshi Son, stated, “Semiconductors are the foundation of all industries.” He emphasized that this investment showcases SoftBank’s confidence in US advanced technology and manufacturing capabilities, believing that Intel will play a key role in expanding the US semiconductor industry.
SoftBank has been accelerating its presence in the US market in recent years. Earlier this year, the conglomerate announced partnerships with OpenAI and Oracle to drive the $500 billion “Stargate Project” aimed at building artificial intelligence infrastructure.
Recently, SoftBank acquired a facility in Lordstown, Ohio for $375 million from Hon Hai (Foxconn) and plans to transform it into an AI data center equipment manufacturing base to service the Stargate Project.
Since taking office as Intel’s new CEO in March, Lip-Bu Tan has been leading the company through a significant restructuring. Intel has recently closed its automotive chip architecture business, laid off employees in parts of its wafer fabrication division, and slowed down construction progress at its new Ohio plant due to financial pressures and lack of significant customer orders.
Tan had previously been asked by Trump to resign due to alleged “conflicts of interest” with Chinese companies. However, following their meeting on August 11, Trump softened his stance, describing the discussion with Tan as “frank and constructive,” and instructed cabinet officials to continue discussions on future cooperation.
The news reignited hopes for Intel’s prospects in the market. According to Dow Jones market data, Intel’s stock price rose by 24% in the week leading up to Friday, August 15, marking its best weekly performance since January 2000.
This move highlights the US’s accelerated efforts to strengthen strategic intervention in key industries. Apart from semiconductors, the Trump administration is actively promoting collaborations with companies like Nvidia and rare earth materials producer MP Materials to enhance domestic supply chains and improve industrial autonomy.