Intel Corp (NASDAQ:INTC, ETR:INL) shares jumped 4% after hours after a double dose of good news.
The struggling chipmaker has secured a $2 billion capital injection from SoftBank, while the Trump administration is weighing a far larger equity stake.
SoftBank’s investment, announced Monday, will give it just under 2% of Intel and make it one of the company’s largest shareholders.
The Japanese group will pay $23 per share in a primary issuance, with chief executive Masayoshi Son calling the move a reflection of his belief in the expansion of advanced semiconductor manufacturing in the US.
The investment adds to SoftBank’s sweeping bet on artificial intelligence, which includes the $500 billion Stargate data centre project.
According to Bloomberg, Washington is considering converting part of Intel’s $10.9 billion in Chips Act grants into equity, which could leave the government holding as much as 10% of the company.
Combined with $11 billion of available loans, the programme is designed to shore up domestic chip capacity for both commercial and military use.
Intel, once the dominant name in processors, has been left behind by rivals that seized the lead in chips for artificial intelligence.
Its new chief executive, Lip-Bu Tan, is attempting to restore competitiveness through cost-cutting and selective investment, but analysts warn that regaining technological leadership will be difficult.
SoftBank said it would not seek a board seat or commit to buying Intel chips, while a White House spokesperson stressed that no government deal has yet been finalised.
Still, a combined push from Tokyo and Washington would represent an unusual collaboration by private and state capital in support of a US industrial champion, underscoring the weight attached to semiconductors in both economic and security policy.