ultimateimp – SoftBank is preparing to invest approximately $2 billion in Intel. Securing a roughly two percent ownership stake in the US chipmaker. According to sources familiar with the matter, SoftBank CEO Masayoshi Son has also discussed deeper strategic possibilities with Intel’s chief executive, Lip-Bu Tan. These discussions have explored options including a joint venture or minority investment in Intel Foundry. With long-term ambitions potentially extending to a full acquisition of the contract chipmaking unit.
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Intel launched its foundry services in 2021, opening its manufacturing facilities to outside customers. However, the unit has struggled to attract significant external demand. Intel continues to be its own largest customer, and its future process technologies—particularly nodes like 18A and 14A—depend on securing external contracts. High capital expenditures and underutilized capacity have raised concerns internally, prompting leadership to consider scaling back plans for advanced technology.
Washington is also considering acquiring a non-voting 10 percent equity stake in Intel through CHIPS Act funding. While Commerce Secretary Howard Lutnick stated the plan aligns with President Trump’s belief that taxpayers deserve equity in return for public investment, analysts have questioned the proposal’s legal viability and overall strategy.
Masayoshi Son Eyes Foundry Tie-In for AI Ambitions
Masayoshi Son’s interest in Intel Foundry aligns with SoftBank’s broader strategy to dominate AI infrastructure. SoftBank already controls Arm, holds equity in OpenAI and Nvidia, and is spearheading the $500 billion Stargate data-center initiative across the United States. The company is pursuing full vertical integration in the AI supply chain, from chips to large-scale computing infrastructure.
In 2024, SoftBank explored building a custom AI accelerator in partnership with Intel. However, performance and volume concerns led the company to pivot to TSMC. SoftBank later acquired UK-based Graphcore for its accelerator intellectual property, adding to its expanding AI hardware portfolio. TSMC remains the global leader in advanced semiconductor manufacturing, and is currently ramping up US production in Arizona to serve clients such as Nvidia and Apple.
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Despite Intel’s efforts to catch up, it continues to lose ground in core markets. Nvidia leads in AI acceleration, while AMD steadily gains share in the PC and server markets. Lip-Bu Tan’s turnaround strategy remains under pressure, with execution and foundry adoption seen as key metrics. Son’s potential foundry tie-up offers Intel both capital and strategic partnership at a critical moment.
SoftBank has framed the planned Intel stake as a show of confidence in Tan’s leadership. “Masa and I have worked closely together for decades,” said Tan, “and I appreciate the confidence he has placed in Intel.” As competition intensifies across AI and semiconductor industries, any formal collaboration between SoftBank and Intel Foundry could shift momentum—provided Intel can deliver on execution and scale.
