SoftBank is investing two billion dollars in common stock of Intel. The two companies signed a definitive agreement regarding the investment, which focuses on further development of semiconductor technology in the United States.
Softbank will invest two billion dollars in Intel. “This strategic investment reflects our belief that the production and supply of advanced semiconductors will continue to expand in the United States, with Intel playing a crucial role”, according to Masayoshi Son, Chairman and CEO of SoftBank Group Corp. in a statement.
The chipmaker has appeared in various reports recently. Donald Trump recently demanded the “immediate departure” of CEO Lip-Bu Tan due to investments in China, but the president later backtracked on this. Additionally, Intel suffered several financial blows. The company laid off twenty percent of its factory workers and pulled the plug on its European plans.
Semiconductor Production in the US
The investment is part of a broader strategy by both parties to strengthen their involvement in the semiconductor industry in the US. According to the terms of the agreement, SoftBank will pay $23 per share. The transaction is still subject to customary closing conditions.
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Both Intel and SoftBank emphasize the importance of semiconductors in future technological developments. Intel states that this collaboration should strengthen American technological and industrial capacity. SoftBank calls semiconductors essential for every industry and expects production in the US to continue growing, with Intel as a pivotal figure in that process.
Softbank is currently already working with Oracle, OpenAI and Nvidia on project Stargate, a $500 billion initiative to build data centers in the US.
SoftBank and Intel have maintained ties for some time. With this investment, both companies are strengthening their relationship. According to Intel, the collaboration reinforces their joint commitment to technological advancement in the United States.