U.S. May Take 10% of Intel as SoftBank Bets $2BN

The U.S. government is reportedly weighing a plan to take a 10% equity stake in Intel Corporation. According to multiple reports, the proposal involves converting part or all of Intel’s $10.9 billion Chips and Science Act grants—which were originally meant to boost commercial and military chip production—into company shares. If approved, this would make Washington one of Intel’s largest shareholders.

The news sparked immediate market reaction. Intel’s stock fell nearly 3.7% after reports of potential federal ownership. Analysts noted that such a move points to deeper struggles at Intel, particularly in its underperforming foundry business, and shows the scale of government involvement required to revive domestic chipmaking.

At the same time, Intel received a boost from SoftBank, which invested $2 billion to buy around 87 million shares at $23 each—roughly a 2% stake. Following this announcement, Intel’s stock jumped over 5% in after-hours trading, signaling renewed investor confidence.

For Intel, these developments come at a critical time. The company has been grappling with manufacturing delays, rising competition, and weak demand. The funding from both the U.S. government and SoftBank could provide financial breathing room to strengthen its foundry operations and compete against global rivals like TSMC and Samsung.

For Washington, the initiative reflects a broader push to secure semiconductor supply chains and reduce dependence on overseas production. If the government does take equity, it would be a rare case of federal involvement in a corporate giant—drawing comparisons to the U.S. stake in General Motors after the 2008 financial crisis.

However, investors should be cautious. Analysts warn that issuing new equity equal to 10% of Intel’s shares would likely dilute existing holdings and reduce earnings per share (EPS). While SoftBank’s backing offsets some of these concerns, market watchers remain focused on how Intel will use the new capital to deliver long-term growth.