SoftBank will invest US$2 billion in Intel by purchasing common stock at US$23 per share, the companies announced on August 18.

Intel’s shares rose 4% in after-hours trading following the news.

Intel, a major US chipmaker, has struggled to leverage the AI boom and grow its chip manufacturing business.

Its foundry unit has yet to secure a major customer, and the company said it will wait for new orders before further investment.

Intel’s stock lost 60% of its value last year but is up 18% in 2025 as of August 18.

SoftBank, headquartered in Japan, has been expanding its presence in the chip and AI sector, including its 2016 acquisition of Arm and recent plans to acquire Ampere Computing.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ SoftBank’s chip investments show remarkable returns that justify Intel bet

SoftBank’s track record in semiconductor investments provides strong context for why this Intel deal makes strategic sense.

The company acquired ARM Holdings in 2016 for approximately $32 billion, and today that investment is worth almost $150 billion—more than quadrupling in value over eight years.

SoftBank has also committed $6.5 billion to acquire chip designer Ampere Computing. These moves demonstrate SoftBank’s systematic approach to building a semiconductor and AI infrastructure portfolio, with the Vision Fund managing over $100 billion in capital specifically focused on technology investments1.

The Intel investment at $23 per share represents SoftBank’s confidence that the chipmaker can execute a similar turnaround, particularly given Intel’s unique position as the only American company capable of manufacturing the most advanced chips.

2️⃣ Intel’s foundry struggles highlight the scale of its competitive challenge

The foundry business that SoftBank is betting on faces steep competitive headwinds that explain why major customers haven’t signed up yet.

TSMC dominates the foundry market with a commanding 64.9% share in Q3 2024, while Samsung holds just 9.3%—and Intel’s foundry services didn’t even rank in the top ten global players2.