Japan's SoftBank to invest $2b in Intel
The move is the latest in SoftBank's succession of investments and business deals in the United States as its charismatic founder Masayoshi Son aggressively courts US President Donald Trump.
'This strategic investment refleRicts our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role,' Son said in a joint press release with Intel announcing the deal.
Trump calls on Intel CEO to resign
SoftBank will pay $23 per share of Intel common stock.
SoftBank's move came as the Trump administration discussed taking a stake of about 10 percent in Intel to boost the chipmaker and the American semiconductor sector, according to US media, including Bloomberg News and the Wall Street Journal.
Since Trump returned to power, Son has already announced other investment plans in the United States, including its leading role in the $500-billion Stargate project to build AI infrastructure in the United States along with cloud giant Oracle and ChatGPT-maker OpenAI.
Son stood beside the US president and fellow investors to announce the Stargate project at the White House in January.
Lip-Bu Tan, Intel chief executive officer, said in the statement the latest deal demonstrates its close ties with SoftBank.
It is 'a company that's at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing US technology and manufacturing leadership,' he said.
Trump had pressed Tan, a Malaysian-born tech veteran, to resign 'immediately,' after a Republican senator raised national security concerns over his links to firms in China.
But during a meeting last week, Trump praised Tan, saying in a social media post that 'his success and rise is an amazing story.'
Trump also wrote that members of his cabinet would work with Tan and come up with 'suggestions'.
Intel is one of Silicon Valley's most iconic companies but its fortunes have been dwarfed by Asian powerhouses TSMC and Samsung, which dominate the made-to-order semiconductor business.
Sharon Chen, an analyst from Bloomberg Intelligence, described SoftBank's investment as 'small' but said it 'suggests the company could invest more in the semiconductor industry as it seeks to be a key participant in the sector's development'.
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