Intel Shares Surge 14%: Massive $2B Investment by SoftBank and Anticipated US Government Share Boost Stock Prices
The Trump administration has made a significant move in the technology sector by acquiring a 10% equity stake in Intel, marking a rare direct government investment in a major US technology company. This investment, totalling $8.9 billion, has been drawn from unpaid grants under the CHIPS and Science Act [1][2].
This development is causing a stir, with Republican lawmakers divided on the issue. Some view it as an important step to strengthen U.S. economic and national security, while others see it as an inappropriate government intrusion into private industry [1].
For Intel, this investment brings financial flexibility as it reassesses spending on projects like the Ohio mega-factory. The company is looking to stabilize operations after years of setbacks and intensified competition [1].
The combination of SoftBank's financial backing and the possible US Government equity support places Intel in a unique position. SoftBank Group is investing $2 billion in Intel through a primary issuance at $23 per share, securing a stake of just under 2% [1]. SoftBank will not seek a board seat or influence management decisions [1].
With the government holding a 10% stake, Intel may receive more substantial support and direction focused on enhancing domestic chip production. This could boost the company’s investment and expansion in U.S.-based manufacturing due to the strategic intent behind the CHIPS Act [1][2].
The U.S. government’s ownership stake could shift market perceptions. The move aims to reduce American reliance on foreign chip manufacturers, like Taiwan’s TSMC, which are seen as geopolitically vulnerable, particularly regarding China. This stake acquisition is part of a broader industrial policy to secure supply chains for critical technologies such as AI chips [2].
The Trump administration has signalled that this Intel deal might be the first of several similar investments in key U.S. companies, including defense contractors like Lockheed Martin, indicating a potential new normal in government equity involvement in critical industries [2].
However, there is still concern about Intel's independence in case political considerations start to dictate its corporate strategy. The US government's potential investment in Intel could bring government interests directly into some technology industries [1].
This investment makes Intel one of SoftBank's top 10 holdings. Following SoftBank's announcement, Intel's shares almost increased by 10% in after-hours trading on August 19, 2025. In contrast, the shares of Tokyo-listed SoftBank plummeted by 4 percent after the news, highlighting the deal's influence on the wider market [1].
In summary, the Trump administration’s acquisition of a 10% stake in Intel is a recently completed strategic move aimed at securing U.S. semiconductor supply chains, sparking political debate and potentially setting a precedent for further government equity purchases in large technology and defense firms [1][2].
[1] The Washington Post. (2025, August 20). Trump Administration Acquires Stake in Intel Through CHIPS Act Funds. Retrieved from www.washingtonpost.com/technology/2025/08/20/trump-administration-acquires-stake-intel-through-chips-act-funds/
[2] Reuters. (2025, August 20). Exclusive: SoftBank to invest $2 billion in Intel at $23 per share. Retrieved from www.reuters.com/business/softbank-to-invest-2-billion-intel-23-per-share-2025-08-20/
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