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Japanese conglomerate backs U.S. chipmaker at $23 per share as Intel pushes turnaround strategy and explores U.S. government support
Intel, once the undisputed leader in the semiconductor industry, has received a much-needed boost as Japan’s SoftBank announced a $2 billion investment in the struggling American chipmaker. The agreement, revealed Monday, will see SoftBank acquire Intel common stock at $23 per share, sending Intel’s stock up 6% in after-hours trading.
The news comes at a critical moment for Intel, as reports suggest the White House is considering taking a 10% stake in the company—valued at roughly $10.5 billion. Such a move would mark a significant intervention by the U.S. government to stabilize a key player in the global semiconductor race.
Intel’s Struggles and Leadership Turnaround
Once a dominant force in chipmaking, Intel has lagged behind rivals after missing key technological advances in recent years. To address the decline, CEO Lip-Bu Tan, who took charge in March, has initiated a sweeping turnaround strategy, including a 15% workforce reduction. The company confirmed that most of these layoffs had been completed by last month.
Tan, a seasoned executive with deep industry ties, has faced heightened scrutiny following allegations of connections to China. Last week, he met with President Donald Trump, who described the meeting as “very interesting” and praised Tan’s “amazing success and rise.”
Strategic Support from SoftBank
For SoftBank, known for its bold tech investments, this move underscores its belief in Intel’s long-term relevance amid intensifying global competition in the semiconductor sector. The investment also adds weight to Tan’s turnaround plans, positioning Intel for renewed competitiveness against rivals in the U.S. and Asia.
What’s Next for Intel
With both private capital from SoftBank and potential public backing from Washington, Intel finds itself at the intersection of corporate reinvention and national strategy. The company’s ability to execute on Tan’s roadmap will determine whether this infusion marks a true revival—or just a temporary lifeline.
