Intel Secures $2 Billion US Investment from Softbank Amid Chip Push

by · Android Headlines

If you take a look at Intel’s stock prices in the past few years, the company has been seeing nothing but red. The price of its shares has dropped steadily. It went from an all-time high of around $74 to as low as $18. However, it looks like the company could have found itself a lifeline. According to a recent announcement, Softbank has revealed it will invest $2 billion in Intel as part of its investments in the US.

Intel gets $2 billion US investment from Softbank

Softbank, for those unfamiliar, is a Japanese technology investment firm. Softbank had previously invested in US carrier, Sprint, and now it looks like it is dumping a $2 billion investment in Intel as well. Thanks to this injection of funds, Intel saw its share prices jump by more than 5%.

Intel used to be the darling of the US tech industry. The company’s chips are used across the world in devices like desktop PCs, laptops, and servers. While Intel still remains a dominant player, the shift in focus to mobile has resulted in the company taking a backseat to other players like Qualcomm.

Plus, Apple ditching Intel’s x86 platform for the Arm platform for its Mac computers probably did not help. This shift to Arm has proven that PC makers might not need to rely on Intel or other x86 chips..

Softbank not alone in its investment

That being said, Softbank might not be alone in its investment in Intel. Recently, US President Donald Trump called for the firing of Intel’s new CEO, Lip-Bu Tan. However, both parties were quick to make up. It was later reported that the Trump administration could be looking to invest in Intel as well, by acquiring a 10% stake in the company.

This is part of Trump’s push to produce more goods in the US. The President recently announced a 100% tariff on imported semiconductors. However, he allowed exceptions if companies were to build it in the US, or commit to building in the US. We’re already seeing how companies like TSMC and Samsung are rushing to build more facilities stateside to avoid paying these tariffs.