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Intel’s hype machine is gearing up again, this time thanks to a significant investment from the Japanese giant SoftBank. SoftBank has announced its intention to purchase up to $2 billion worth of Intel common shares at a price of $23 per share. This investment would likely result in SoftBank acquiring approximately 86.956 million shares. For context, Intel’s stock closed today’s regular trading session at $23.66.
SoftBank’s move is part of its strategy to gain exposure to the expanding semiconductor fabrication footprint in the U.S., and it believes that Intel will play a critical role in this endeavor:
> “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.”
Meanwhile, initial excitement around a potential U.S. government stake in Intel has diminished. According to earlier reports, the Trump administration is considering purchasing a 10 percent stake in Intel to fund its delayed Ohio fab project. However, this plan now includes converting CHIPS Act funding that Intel has already received into equity.
Intel has been awarded grants worth approximately $7.9 billion as part of the CHIPS Act initiative, which aims to re-shore semiconductor supply chains. Additionally, it is entitled to receive $3 billion under the Pentagon’s Secure Enclave program and can access a facility that unlocks an additional $11 billion in loans.
A 10 percent stake would be valued at around $10 billion, meaning the Trump administration might invest an extra $2.1 billion to acquire this stake if all CHIPS Act grants are converted into equity.
Intel’s stock price has risen by 5 percent in after-hours trading today. Over the past five trading days, gains have approached 20 percent.
