Intel Corp (NASDAQ:INTC, ETR:INL) is in discussions with several large investors to raise fresh capital through a discounted equity infusion, according to a CNBC report citing people familiar with the matter.
The talks follow a $2 billion investment from Japan’s SoftBank, which purchased shares at $23 each, slightly below the company’s recent closing price of $23.66.
The negotiations come at a pivotal moment for Intel as it works to secure funding for product development and manufacturing amid rising competition in the semiconductor sector.
The company has faced declining market share and setbacks in artificial intelligence chips, prompting efforts under new CEO Lip-Bu Tan to stabilize operations and regain momentum.
At the same time, the US government is exploring an unprecedented move to take an equity stake in the chipmaker.
Commerce Secretary Howard Lutnick confirmed that discussions are underway for the government to acquire about 10% of Intel using funds already committed under the CHIPS Act, which was designed to strengthen domestic semiconductor manufacturing.
Lutnick said the Biden administration’s grants should be converted into equity ownership to secure a return for taxpayers.
He also highlighted national security concerns, stressing the need for US-based chip production and reduced reliance on foreign suppliers such as Taiwan.
The proposed stake would be non-voting, meaning the government would not influence Intel’s governance or decision-making, preserving the authority of the company’s board.
Intel’s shares traded lower following the report, down 6.7% at about $23. The stock remains up about 7.5% in the last week and almost 18% in the year to date.