SoftBank Bets Big: $2 Billion Investment in Intel to Power Global Chip Race

Sapatar / Updated: Aug 19, 2025, 17:43 IST 40 Share
SoftBank Bets Big: $2 Billion Investment in Intel to Power Global Chip Race

SoftBank’s Bold Move to Strengthen Semiconductor Industry

Japan’s technology investment giant SoftBank Group is set to make a significant $2 billion investment in U.S. chipmaker Intel, signaling a deepening collaboration in the global semiconductor industry. The move comes at a time when demand for advanced chips is rising amid AI adoption, 5G expansion, and growing concerns over supply chain security.

Strengthening Intel’s Position in AI and Chip Manufacturing

According to industry insiders, the fresh infusion of funds will be directed towards Intel’s ongoing expansion of semiconductor manufacturing facilities and AI-driven chip development. Intel has been pushing aggressively to reclaim its position in the global chip market against rivals like TSMC, Samsung, and NVIDIA. This partnership could accelerate Intel’s foundry business while supporting SoftBank’s portfolio companies that rely heavily on advanced chip technologies.

Boost for Japan-U.S. Tech Collaboration

The investment also highlights Japan’s increasing role in the global chip race. SoftBank, already the owner of Arm Holdings, has been strategically backing semiconductor innovation worldwide. Analysts suggest that this deal could strengthen U.S.-Japan technology cooperation at a critical time when governments are prioritizing semiconductor self-sufficiency and reducing reliance on China.

Market Reactions and Future Outlook

Financial experts expect this development to have a positive impact on Intel’s stock, with projections of improved investor confidence in its long-term roadmap. For SoftBank, the move diversifies its investment portfolio and positions it as a key player in the AI and semiconductor ecosystem. Both companies are expected to reveal more details about the partnership in the coming weeks.