On August 19th, Intel Corporation and Japan's SoftBank Group announced that SoftBank will invest $2 billion (approximately 14.376 billion yuan) in Intel! According to the agreement, SoftBank will purchase Intel's common stock at a price of $23 per share. Affected by this news, Intel's stock rose 4% in after hours trading. This investment is seen as an important vote of confidence in Intel. In recent years, Intel has failed to fully seize the opportunities brought by the artificial intelligence boom in the advanced semiconductor field, resulting in poor stock price performance. In 2024, Intel's stock price fell by 60%, marking the worst annual performance since the company went public more than half a century ago. However, as of the close of this Monday, Intel's stock price has risen by 18% in 2025. Intel, as the only company in the United States capable of producing the most advanced chips, holds a crucial position in the US semiconductor supply chain. Recently, Intel has become a focus of discussion in the Washington political arena as the company is seen as a key chip supplier to the United States. However, Intel's foundry chip manufacturing business has not yet received significant customer orders, which is crucial for the stability and expansion of its business. Last month, Intel stated that it would further invest in its foundry business after receiving customer orders.
At the industry level, the arrival of this funding coincides with Intel's critical transformation period. According to the second quarter financial report, Intel achieved revenue of $12.9 billion, which was basically the same as the same period last year, but suffered a net loss of approximately $2.9 billion due to restructuring, impairment, and one-time costs. To alleviate pressure, the company's management is reducing operating expenses while continuously promoting organizational streamlining, and is shifting space for wafer foundry manufacturing, chip products, and AI routes through a "cost reduction+focus" approach. Currently, the progress of capital expenditures, customer commitments, and manufacturing outsourcing business has become an important signal for the outside world to observe Intel's future trends. However, in the fiercely competitive semiconductor industry, relying solely on financial subsidies or cost control is not enough to reverse the situation. What is more crucial is technological iteration and gaining more customers. Especially Intel's decision to continue investing in its wafer foundry business (IFS) is crucial in identifying key customers and long-term foundry orders. This is related to whether the utilization rate and gross profit margin of the production line can be improved, thereby establishing a sustainable business path and forming a positive cycle for the subsequent research and mass production of nodes such as 14A/18A. SoftBank's investment has also sparked speculation in the market about the potential synergy between Arm, a subsidiary of SoftBank, and Intel. Intel is promoting its foundry business, hoping to provide wafer manufacturing services to more chip customers. If the two can collaborate, Arm's IP ecosystem and Intel's manufacturing capabilities may complement each other.
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