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SoftBank invests $2 billion

SoftBank invests $2 billion

Japanese multinational investment holding company SoftBank announced on Tuesday that it will invest $2 billion to struggle with US chip maker Intel. The investment is reportedly equal to 2% of a U.S. company, which will make SoftBank the fifth largest shareholder. SoftBank will pay Intel’s common stock $23 per share, according to a joint statement from the two companies. This is a major improvement for Lip-Bu Tan, who served as CEO of the once-acting chipmaker in March.

SoftBank and Intel leaders are happy with the relationship

“We are excited to deepen our relationship with SoftBank,” said Tan. The former CEO of Cadence Design Systems called the Japanese Consortium, “a company that leads in many emerging technologies and innovation areas.” He added that he has worked closely with SoftBank Chairman and CEO Masayoshi Son for years and thanked “his confidence in this investment in Intel.”

Meanwhile, the son said that semiconductors are “the foundation of every industry.” Japan’s wealthiest man, who announced a $100 billion investment in the U.S. over the next four years in December, called Intel a “trustworthy leader in innovation.” “This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will be further expanded in the U.S., and Intel plays a key role,” he added.

Intel is a key company in the foundation of Silicon Valley and has historically been the main force in the semiconductor industry. Once so powerful, it It is said that Want to buy NVIDIA for $20 billion twenty years ago. Nvidia has since surged its competitors and became the first publicly traded company worth $4 trillion earlier this year. Intel, on the other hand, is already behind Failed to develop competitive GPU technology appropriately and missed the AI boom.

SoftBank invests $2 billion trump tariffsSoftBank invests $2 billion trump tariffs

Trump administration believes Intel has 10% stake

In addition to SoftBank’s investment, the Trump administration has also reached a deal that could give the U.S. government a 10% stake in Intel. “The last thing we have to do is grab the stakes and try to do business. The stakes will be a conversion of grants and may invest in increasing investments to help stabilize the company’s chip production in the U.S. rather than trying to force the company to buy from Intel From Intel,” Treasury Secretary Scott Bessent said in a conversation with CNBC on Tuesday.

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