Following the announcement by Softbank, a major Japanese technology investment company, about its purchase of a $2 billion (£1.5 billion) interest in the American computer chip business, Intel’s stock shot up.
Originally revealed last week, the suggested agreement is meant to enable Intel to build a big manufacturing facility in Ohio. Until there is a formal announcement, a White House spokeswoman told the BBC that these accounts should be regarded as nothing more than conjecture. For remarks on this subject, the BBC contacted Intel as well as the White House.
According to the agreement made public on Monday, Softbank will pay $23 for every Intel share. The two companies released a joint statement, “The investment comes as both Intel and SoftBank deepen their commitment to investing in advanced technology and semiconductor innovation in the United States.” Rumors suggest this transaction is to recover from the Intel stock drops after Trump targeted the Intel CEO over his China ties.
Intel’s stock rose more than 5% in after-hours New York on Monday following this announcement. Last week, US President Donald Trump and his cabinet members met Intel CEO Lip-Bu Tan. This meeting followed Trump’s call for Mr. Tan to resign, alleging that he was highly conflicted given his prior ties to China.
These changes come against increased White House examination of the American semiconductor sector. Intel’s possible deal with the US government has been called a vital lifeline for the business by some experts. Intel is one of the few American firms able to make premium semiconductors at scale. Still, on a worldwide level, competitors chip producers like Samsung and TSMC have overtaken it.
The company decided against commenting on the claimed discussions on Thursday, claiming it is “deeply committed to supporting President Trump’s efforts” intended at strengthening manufacturing and technology in the United States. According to political scientist Sarah Bauerle Danzman, such an agreement would constitute a “significant escalation” in what looks to be an attempt by the Trump administration to redefine the US government’s role in the private sector.
