SoftBank Fuels Intel with $2B Investment, Bolstering US Chip Production
SoftBank, the Japanese tech titan, has declared a $2 billion investment in the beleaguered chipmaker, Intel. The investment, which equates to approximately 2% of the company, was made at $23 per share. This move comes at a time when Intel is grappling with a 60% stock slump last year and persistent hurdles in its foundry business.
SoftBank’s CEO, Masayoshi Son, expressed that the investment signifies their confidence in the expansion of “advanced semiconductor manufacturing and supply” in the United States. He further emphasized that Intel will play a pivotal role in this growth.
Lip-Bu Tan, the new CEO of Intel who assumed the role in March following Pat Gelsinger’s exit, welcomed the partnership. This comes amidst speculations that the Trump administration is contemplating a 10% government stake in the company.
The investment injects crucial capital as Intel strives to secure major clients for its foundry operations and regain its footing in the fiercely competitive chip market.
Source: CNBC