SoftBank, Japanese multinational conglomerate, to invest $2 billion in Intel, leading semiconductor manufacturer.
SoftBank Invests $2 Billion in Intel, Amidst Workforce Reduction and Government Support
SoftBank Group has made a strategic investment of $2 billion in Intel, marking a significant commitment to the U.S. semiconductor industry and advanced technology [1][2]. This investment comes at a time when Intel is undergoing restructuring, with plans to reduce its workforce by 14,000 employees by the end of 2024 [1].
The investment will be in the form of purchasing Intel's common stock at $23 per share, representing about a 2% stake in the company [1]. The U.S. government is also supporting Intel's domestic manufacturing expansion, converting prior CHIPS Act grants into stock to secure an approximately 10% equity stake in the company [3][4][5].
Intel's workforce reduction will be achieved through a combination of layoffs and attrition, bringing the number of "core" workers down to 75,000 by the end of the year [1]. This move is part of a broader effort to streamline the company's focus and improve its competitiveness in the semiconductor market.
The investment from SoftBank and the U.S. government reflects confidence in Intel's critical role in semiconductor leadership and in advancing U.S. technology sovereignty. This support comes as Intel, once a pioneer of Silicon Valley, has fallen behind competitors like Nvidia Corp. and Advanced Micro Devices Inc. [6].
In other news, SoftBank's chairman, Masayoshi Son, announced a major investment of up to $500 billion in a project to develop artificial intelligence called Stargate in February [7]. Intel's new CEO, Lip-Bu Tan, was appointed in March, following a period of tension between Tan and President Trump, who initially called for Tan's resignation. However, after a meeting last week, Trump said Tan has an "amazing story" [8].
Interestingly, SoftBank is a major shareholder in Arm Holdings, a British semiconductor and software design company [9]. Intel's shares rose 5.4% early Tuesday in pre-market trading, following the announcement of SoftBank's investment in the company [10].
References:
- SoftBank invests $2 billion in Intel, marking a strategic commitment to U.S. semiconductor manufacturing and innovation
- SoftBank to invest $2 billion in Intel, boosting U.S. semiconductor sector
- U.S. government to invest $8.9 billion in Intel, boosting domestic semiconductor manufacturing
- U.S. to convert CHIPS Act grants into Intel stock, boosting government's equity stake in company
- U.S. to convert $50 billion in CHIPS Act grants into Intel equity stake, boosting government's stake in company
- Intel, once a pioneer of Silicon Valley, has fallen behind competitors like Nvidia Corp. and Advanced Micro Devices Inc.
- SoftBank chairman Masayoshi Son announces $500 billion investment in artificial intelligence project Stargate
- Trump says Intel CEO Tan has an "amazing story" after meeting with SoftBank's Masayoshi Son
- SoftBank is a major shareholder in Arm Holdings, a British semiconductor and software design company
- Intel shares rise 5.4% early Tuesday in pre-market trading, following SoftBank's investment announcement
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