SoftBank invests $2 billion in Intel, and the Trump administration is reportedly considering investing $10 billion to become a major shareholder, intertwining capital and geopolitical factors in a new chapter of the semiconductor war. (Background: Intel is rumored to be cutting 20% of its workforce, and CEO Pat Gelsinger is diving into "15th generation CPU at discounted prices, overclocking can be guaranteed" to save disappointing sales) (Additional context: TSMC's earnings call refutes "collaboration with Intel," CEO C.C. Wei: Technology will never be leaked, and there are no plans for a joint venture) SoftBank Group today (19th) announced that it will purchase common stock of Intel (intel) for $2 billion at $23 per share; upon the announcement, Intel's stock price rose 5% in after-hours trading. Earlier, the Wall Street Journal reported that the Trump administration is evaluating an investment of about $10 billion for a 10% stake in Intel. As private capital and national funds simultaneously target Intel, the future of the global semiconductor war adds new variables. SoftBank's $2 billion: Liquidity and strategic synergy According to a statement, Masayoshi Son presented this investment based on a "deep trust in the potential of U.S. semiconductor manufacturing." Intel CEO Pat Gelsinger responded that both sides can complement each other in AI, advanced processes, and wafer foundry. SoftBank holds key assets such as Arm and Ampere, and the synergy may help strengthen Intel's gaps in the 18A process and AI product lines. According to Business Wire, SoftBank's investment aligns with the direction of the U.S. (Chip Act) and will assist Intel in advancing its domestic wafer factory plans in Ohio, reducing reliance on Asian production capacity. Although $2 billion is far less than the hundreds of billions typically required for advanced wafer fabrication facilities, it carries significant symbolic meaning: global capital has viewed the "reshoring" of U.S. manufacturing as a long-term strategy rather than merely a policy bonus. Trump administration's billion-dollar discussions: A shift in subsidy logic On the other hand, the Wall Street Journal pointed out that Trump administration officials are considering using part of the funding from the (Chip and Science Act) for equity investment, with a holding limit set at 10%. If finalized, the U.S. government will be on par with the largest institutional investors, directly holding voting rights. This signifies that U.S. industrial policy may be shifting from "subsidies" to "equity holdings." The state is no longer just a provider of funds but also a national shareholder with governance seats. This model is relatively rare in the U.S. private economy, reflecting Washington's adoption of more direct measures in the chip war to ensure supply chain security and seize cutting-edge manufacturing. However, if realized, investors are concerned that government stakeholding may influence company decisions, slow down product timelines, or even lead to politically directed project allocations, and the actual effects remain to be seen. Intel faces multiple pressures In recent years, Intel has encountered delays in product timelines, widening the gap with TSMC and Nvidia. Although the Biden administration announced $8 billion in subsidies in 2024 for building wafer fabs in Ohio and other regions, the engineering progress has not met expectations, raising questions in Congress. President Trump even directly asked Gelsinger to resign earlier this month, further drawing attention to Intel's governance structure. In this context, SoftBank's funding could ease short-term cash pressures and bring about technical cooperation; if government investment is ultimately confirmed, Intel will hold long-term and stable national funding but will also have to face more policy objectives, oversight, and scrutiny. How Gelsinger balances national security, shareholder returns, and product competitiveness will determine whether Intel can truly revive.

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