Is a 2 billion investment paving the way for a larger acquisition deal? Report: SoftBank and Intel are negotiating the acquisition of chip foundry business

According to previous reports from Jianwen, SoftBank previously "positioned" to invest $2 billion in Intel. According to the latest media reports, SoftBank founder Masayoshi Son had discussions with Intel CEO Pat Gelsinger weeks ago regarding the acquisition of its foundry business, highlighting the Japanese tech giant's ambitions in the AI infrastructure sector.

On Tuesday, media reports citing informed sources revealed that Masayoshi Son has met multiple times with Intel's new CEO Pat Gelsinger since he took office in March this year to discuss potential deal options. Intel's foundry business is struggling to compete with TSMC, but its customer appeal is insufficient, forcing the company to seek solutions.

The discussions involved various potential forms of cooperation, including establishing a joint venture with a third party or making minority equity investments. Informed sources indicated that the investment announced on Monday does not rule out the possibility of a larger-scale deal regarding Intel's foundry business in the future.

This potential acquisition aligns with Masayoshi Son's strategic plan to build a complete AI infrastructure and also provides an opportunity for the Trump administration to counterbalance TSMC's dominance in the chip manufacturing sector.

Intel's Foundry Business in Trouble

Intel's foundry business has been underperforming since it opened to external customers in 2021. Former CEO Pat Gelsinger announced this strategic shift at that time, investing billions of dollars to build new manufacturing plants, betting on an increase in customer demand.

However, the high costs of these projects, coupled with Intel's own financial difficulties, prompted the new CEO Pat Gelsinger to warn of a potential exit from the most advanced chip manufacturing processes. An informed source stated, "No one is willing to bear the risks of Intel's manufacturing plans and technologies alone... the only customer is Intel itself."

TSMC currently produces the vast majority of the world's most advanced chips. While most manufacturing activities take place in Taiwan, the company is investing in new facilities in Arizona and has begun producing chips for Nvidia and Apple.

U.S. Government Support to Promote Deal Prospects

Meanwhile, the U.S. government is also exploring the possibility of taking a stake in Intel, with media reports citing informed sources that such a move would provide strong support for SoftBank's further investments.

Trump's view of Tan has dramatically changed in recent weeks, from demanding his resignation last month to praising his "success and rise... a remarkable story" after their meeting.

Media reports cited a person familiar with Masayoshi Son's discussions with Intel, indicating that the U.S. Department of Defense's decision last July to become the largest shareholder of U.S. rare earth producers could serve as a reference model for SoftBank to increase its investment.

SoftBank's AI Ecosystem Strategic Layout

Acquiring Intel's foundry business aligns with Masayoshi Son's plan to build a complete AI infrastructure, covering areas such as robotics, energy, and chip manufacturing. SoftBank already holds shares in OpenAI and Nvidia and is a driving force behind the Stargate data center project.

**Last month, Arm, a subsidiary of SoftBank, confirmed that it is exploring the idea of launching its own chips. SoftBank had discussions with Intel last year about producing AI chips, but the plan ultimately stalled due to Intel's inability to meet SoftBank's requirements **

Masayoshi Son visits the United States every two weeks and has established a close personal relationship with President Trump. Son and Trump jointly announced the Stargate project in January this year.

It is worth mentioning that SoftBank's stock price fell about 2% in Tokyo on Tuesday, but has risen more than 75% so far this year, as investors bet that the group will return capital to shareholders through portfolio company listings and the soaring valuation of OpenAI.