Trump Considers 10% Intel Stake After SoftBank Invest $2 Billion In Chipmaker

The race for semiconductor dominance is heating up worldwide, as governments and investors pour billions into securing the future of chip technology. Once a symbol of the United States’ dominance in chipmaking, Intel has struggled to keep pace with rivals like Taiwan Semiconductor Manufacturing Co. and NVIDIA.

Now, the company finds itself at the center of an unusual alliance: the U.S. government and Japan’s SoftBank are both weighing big bets that could reshape Intel’s trajectory and place in the global industry.

The Trump administration is considering taking roughly a 10% stake in Intel Corp., according to people familiar with the matter. The move would convert grants from the U.S. Chips and Science Act into equity, potentially making Washington the company’s largest shareholder.

Intel has promised $10.9 billion in manufacturing grants and access to $11 billion in loans under the 2022 law. While those funds were originally structured as reimbursements tied to project milestones, converting them into shares would fast-track the government’s influence in Intel’s turnaround.

The plan comes as SoftBank Group Corp. announced a $2 billion investment in Intel, signing a definitive agreement to purchase Intel’s common stock at $23 a share.

“Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation,” said Masayoshi Son, Chairman and CEO of SoftBank. “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’s CEO, Lip-Bu Tan, welcomed the deal, pointing to his decades-long relationship with Son. “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 U.S. technology and manufacturing leadership,” he said.

For President Trump’s team, the stakes are as political as they are economic. Reviving Intel’s long-delayed mega-factory project in Ohio, the home state of Vice President JD Vance, has become a priority.

The administration is also considering whether to apply the Chips Act–for-equity model to other companies. However, no decisions have been made, and White House officials have declined to comment on the details so far.

Together, the moves show how both governments and private investors still see promise in Intel despite its struggles against industry leaders.

Markets have also shown mixed signals: Intel shares logged their strongest weekly rally since February on hopes of government backing, slipped after reports of the potential U.S. stake, and rebounded once SoftBank’s deal was announced. In Tokyo, SoftBank’s stock fell as investors weighed the risks of another bold bet by Masayoshi Son.

Whether these bets will be enough to help Intel reclaim its place at the top of the semiconductor world remains an open question. However, with Washington and SoftBank now in its corner, the company has no shortage of powerful backers urging a comeback.

The pressure is on Intel’s leadership to turn things around, and their talks happening in government circles make it clear: federal support won’t just be helpful, it will become essential in turning the chipmaker’s fortunes.

After CEO Lip-Bu Tan’s meeting with President Trump, the company emphasized its commitment to U.S. technology and manufacturing, framing the conversation as part of a broader effort to “restore this great American company.”

For the administration, the bet is about creating jobs, securing national supply-chains, and keeping semiconductor innovation rooted in the U.S. For SoftBank, it’s a wager on chip design and AI infrastructure as global demand soars.

Markets, meanwhile, have reacted with a mix of optimism and caution. What’s clear is that Intel is at the center of a rare alignment between government and private capital, both pushing for the same goal: getting America’s once-great chip pioneer back on top.

Do you think Intel can turn these high-stakes bets into a true comeback story? Will this be another successful strategic investment by SoftBank?

Let us know in the comments section below!