SoftBank invests $2 billion in Intel stock at $23 apiece

SoftBank Group announced that it will purchase $2 billion worth of Intel stock at $23 apiece. The deal was formalized through a securities purchase agreement and should help the U.S. chip maker raise additional funds amid financial difficulties. SoftBank, meanwhile, still retains a controlling stake in Arm.

At the same time, SoftBank will continue to hold a controlling interest in Arm.

Terms of the deal and significance for Intel

Intel shares are trading below the company’s book value today. Its market capitalization is around $103 billion, while the value of its real estate and manufacturing facilities is estimated at $109 billion. Thus, the investment for SoftBank looks like both a lucrative financial opportunity and a strategic move.

An investment for SoftBank looks like both a lucrative financial opportunity and a strategic move.

$2 billion is a relatively small amount for the industry. By today’s standards, it costs $20-30 billion or more to build a single advanced chip plant, depending on the scale of production and the equipment used. Nevertheless, the money will help Intel, which has been making multibillion-dollar losses every quarter.

A bet on U.S. semiconductors and AI

In official statements, Intel and SoftBank emphasized that the investment is aimed at strengthening the U.S. position in advanced technology and semiconductor manufacturing. For SoftBank, the deal is also linked to plans to become more involved in the development of artificial intelligence, where access to advanced manufacturing facilities plays an important role.

SoftBank also said that the deal is aimed at strengthening the U.S. position in advanced technology and semiconductor manufacturing.

If Intel is able to successfully realize the new 18A and 14A products and processes, the company will be a valuable partner for SoftBank. This will benefit both Arm and Ampere, which are controlled by the Japanese holding company.

Intel’s new 18A and 14A products and processes will be a valuable partner for SoftBank.

Executive Statements

“Semiconductors are the backbone of every industry. For more than 50 years, Intel has remained a trusted leader in innovation. This strategic investment reflects our confidence that manufacturing and supply of advanced chips in the U.S. will expand, and Intel will play a key role in that process.”

“We are pleased to deepen our relationship with SoftBank, a company that is at the forefront of many emerging technologies and shares our commitment to developing U.S. leadership in technology and manufacturing. I appreciate the confidence Masayoshi Son has placed in Intel by investing in our future.”