NATIONAL NEWS – Intel comeback; chip maker secures $2B lifeline from SoftBank amid mounting chip struggles

Ananya Roy, News Writer

Intel secured a $2 billion equity investment from SoftBank, marking a crucial lifeline for the struggling U.S. chipmaker as it works to regain footing in the semiconductor and AI industries. The deal makes SoftBank Intel’s sixth-largest shareholder, though the Japanese investor will not take a board seat or commit to buying Intel chips. Intel shares rose more than 7% on the news, while SoftBank’s stock closed down 4%.

The investment comes as Intel faces mounting competition from AMD and Taiwan’s TSMC, as well as pressure from U.S. officials to stabilize domestic chip production. SoftBank CEO Masayoshi Son framed the deal as a strategic bet on U.S. semiconductor leadership, even as speculation swirls over potential U.S. government involvement in Intel’s turnaround. Despite Intel’s $18.8 billion loss in 2024, analysts say the partnership could position the company as a key player in America’s efforts to secure its chip supply chain.