United States: Intel shares have jumped more than 5 percent in after-hours trading after Japanese investment giant SoftBank announced a $2 billion (£1.5 billion) stake in the US semiconductor maker.
SoftBank confirmed it will acquire Intel shares at $23 each, describing the move as a joint commitment with Intel to advance semiconductor innovation in the United States. The announcement came just hours after reports emerged that the Trump administration is considering taking around a 10 percent stake in Intel by converting government grants into equity. The potential deal is aimed at supporting the company’s planned flagship manufacturing hub in Ohio.
A White House spokesperson previously conveyed that, such reports should be treated as ‘speculation’ until officially confirmed. The developments follow a meeting last week between US President Donald Trump, members of his cabinet, and Intel chief executive Lip-Bu Tan. The meeting came shortly after Trump publicly called for Tan’s resignation, citing ‘conflicts of interest’ due to his past links with China.
Analysts say the US government’s potential move could represent a lifeline for Intel, which has fallen behind global competitors such as Samsung and TSMC in advanced chipmaking.
Sarah Bauerle Danzman, political scientist at Indiana University remarked that, “This marks a major escalation in Washington’s involvement in the private sector. But it also sets a concerning precedent about whether firms will be compelled to align with political agendas.”
At the same time, experts suggest the US government is determined to protect domestic chip production and position Intel at the heart of the nation’s AI and security strategy.
Dan Sheehan of Telos Wealth Advisors noted that, “The Government’s agenda is clear, accelerate domestic production, reduce dependence on Asia, and place Intel at the centre of the AI and national security landscape. SoftBank’s investment is a clear vote of confidence in Intel’s turnaround.”
The news comes as Washington ramps up scrutiny of the semiconductor sector. Last week, chip rivals Nvidia and AMD struck an unprecedented deal with US authorities, agreeing to pay 15 percent of their Chinese revenues in exchange for export licences to China.
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