SoftBank To Invest $2 Billion In Intel As Part Of US Push

SoftBank Group Corp. agreed to buy $2 billion in Intel Corp. stock, a move that extends its US investment effort and offers a vote of confidence in the struggling chipmaker. 

SoftBank will pay $23 a share for Intel common stock, according to a joint statement Monday. The agreement, which the companies described as a move to “deepen their commitment” to US chip innovation, will be subject to customary closing conditions.

Intel shares jumped about 5% in late trading after the announcement. They had closed at $23.66 in New York after a year-to-date gain of 18%.

SoftBank, based in Tokyo, has been expanding its US footprint. That includes a recent deal to buy Foxconn Technology Group’s electric vehicle plant in Ohio and establish a data center project with OpenAI and Oracle Corp. dubbed Stargate.

Intel, meanwhile, is aiming to prove it can be a technology leader again after falling behind in the chip industry. It also has held talks with the Trump administration about a deal that would potentially turn the US into its biggest backer. Administration officials have discussed taking a stake of about 10% in the chipmaker, Bloomberg reported earlier Monday.

In announcing its investment in Intel, SoftBank paid tribute to the chip pioneer’s history.

“For more than 50 years, Intel has been a trusted leader in innovation,” SoftBank Chief Executive Officer Masayoshi Son said in the statement. “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.”

Intel CEO Lip-Bu Tan, a chip industry veteran who took the helm earlier this year, has worked with Son previously.

“We are very pleased to deepen our relationship with SoftBank, a company that’s at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing US technology and manufacturing leadership,” he said in the statement. “I appreciate the confidence he has placed in Intel with this investment.”