SoftBank invests 65 billion baht in Intel shares as chip giant eyes comeback

Intel, striving to reclaim its leadership in technology, is receiving strong backing from the Trump administration, which may take up to a 10% stake and become the company’s largest supporter.

Bloomberg reported that SoftBank Group, the Japanese investment holding company, has agreed to purchase Intel shares worth US$2 billion (around 65 billion baht). The surprise deal is expected to provide support to Intel, which has been struggling in recent years.

SoftBank will pay US$23 per share, slightly below Intel’s latest closing price. Following the announcement, Intel shares surged by more than 5% in after-hours trading, while SoftBank shares in Tokyo dropped by as much as 5%.

As the largest shareholder in Arm Holdings, the chip designer for smartphones, SoftBank has spent decades attempting to establish itself as a key player in artificial intelligence (AI). 

This ambition became even clearer earlier this year with the announcement of “Stargate Project,” a US$500 billion initiative with OpenAI, Oracle Corp, and Abu Dhabi’s MGX fund to build data centres in the United States.

Intel, meanwhile, is determined to prove it can once again be a technology leader after falling behind TSMC in chip manufacturing and Nvidia in chip design. Intel CEO Lip-Bu Tan met US President Donald Trump at the White House last week to pave the way for discussions on government support.

Intel has been in talks with the Trump administration over a potential deal that could see the US government take a stake of about 10%, making it the company’s largest backer.

SoftBank has been steadily expanding its presence in the US, including its recent acquisition of Foxconn Technology Group’s electric vehicle factory in Ohio – a key step that could serve as the launchpad for Stargate Project.

“For more than 50 years, Intel has been a trusted leader in innovation,” SoftBank founder Masayoshi Son said in a statement. “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 timing of the announcement may also bolster Japan’s government, which has been pressing the US to honour its commitment to cut tariffs on Japanese car imports in exchange for a proposed US$550 billion investment fund in America.

As part of its potential investment in Intel, the Trump administration is considering acquiring around a 10% stake in the company. If finalised, this would make the United States the largest shareholder in the struggling chipmaker.

In addition, the federal government is weighing whether to convert part or all of the subsidies granted to Intel under the US Chips and Science Act into equity, according to sources who requested anonymity. 

Under the Act, Intel is set to receive a total of US$10.9 billion in subsidies to support both commercial and military-related chip production.