Japan’s SoftBank to invest US$2 billion in Intel
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Shares in the chip maker rose following news of SoftBank’s planned investment and a possible stake for the U.S. government.
Intel is getting a $2 billion lifeline from SoftBank and could get more from the Trump administration. But that might not be enough to save the ailing chipmaker.
Intel’s stock surges on SoftBank investment and potential U.S. government stake. Here’s why the rally could crumble. While an investment from SoftBank Group Corp. and rumors of a U.S. government stake sent Intel’s stock soaring Tuesday, Wall Street remains skeptical that throwing money at the chip maker will usher in a real turnaround.
SoftBank Group Corp. agreed to buy $2 billion of Intel Corp. stock, a surprise deal to shore up a struggling US name while boosting its own chip ambitions.
SoftBank’s billionaire founder Masayoshi Son held talks with Intel’s chief executive about buying its faltering contract chipmaking business in the weeks before Monday’s announcement that the Japanese company would invest $2bn in the US group’s shares.
Hon Hai Precision Industry Co. will operate a US factory owned by SoftBank Group Corp., setting up what’s in the running to be the first manufacturing site in the Japanese company’s $500 billion Stargate venture with OpenAI and Oracle Corp.
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