SoftBank’s decision to invest in Intel is not yet connected to Trump, as it was reported by a person familiar with the matter, reported Reuters. The White House did not immediately respond to a request for comment.
Masayoshi Son, the CEO from SoftBank, said in a statement that “This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role,”.
The price will be $23 per Intel share, flagging a slight discount to Monday’s closing price of $23.66. SoftBank’s investment comes via a primary issuance of common stock by Intel, and, based on the US market capitalisation at close of trading on Monday, representing an equity stake of just under 2%, as it was reported by an Intel spokesperson.
The Japanese company would also become the sixth-largest investor in Intel, as it was reported by LSEG data. On Tuesday, SoftBank shares also dropped 5%, following the announcement, while Intel surged 5.6% in after-market hours trading.
The Japanese company will also only take an equity stake in Intel and will neither seek a board seat nor commit to acquiring Intel’s chips, as it was reported by a person familiar with the matter.
It is also worth mentioning that Intel has struggled financially and recorded an annual loss of $18.8 billion in 2024, its first loss of this type since 1986, as it deals with multiple challenges.
