Intel lands $2 billion lifeline

Following reports that the US President is considering a stake in the troubled chipmaker, Intel, SoftBank has agreed to invest $2 billion into the tech giant, the Guardian reported.

The Japanese tech investment bank announced the deal on Tuesday and SoftBank are thought to be gaining a 2% stake in the tech giant.

Masayoshi Son, the chief executive and chair of SoftBank said that Intel is a “trusted leader in innovation”.

He added, “This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the US, with Intel playing a critical role.”

Bloomberg reported that the US government could have a stake as high as 10% in the chipmaker.

Lip-Bu Tan who holds the top job in the company said on Tuesday that Intel is “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 had “worked closely together [with Son] for decades”, he added.

Danni Hewson, an analyst at the investment broker AJ Bell, said, “Intel has been left behind by the shift to AI with US peers like Nvidia and Advanced Micro Devices enjoying much greater success in this market.

“The company’s position as the last US manufacturer of high-end semiconductors of any scale means it has potential strategic significance across the Atlantic but translating this into improved operational and financial performance is now the big challenge.”