As it expands its involvement in semiconductor production and other cutting-edge technology in the United States, Japanese technology behemoth SoftBank Group plans to acquire a $2 billion (€1.7 billion) stake in computer chip manufacturer Intel, the firms announced Monday.
Following the announcement, which came amid unverified rumors that President Donald Trump is contemplating having the US government purchase a portion of the chip manufacturer, SoftBank’s stock dropped 4% in Tokyo on Tuesday. In pre-market trading on Tuesday, Intel’s stock increased 5.4%.
In February, its chairman Masayoshi Son announced a significant investment of up to $500 billion (€428 billion) to develop an artificial intelligence project named Stargate, joining Trump, OpenAI’s Sam Altman, and Oracle’s Larry Ellison.
SoftBank intends to spend $23 (€19.70) per share to purchase $2 billion (€1.7 billion) worth of Intel common shares. That amounts to roughly 2% of the total. On Monday, Intel’s stock finished at $23.66 (€20.26). “Every industry is built on semiconductors,” Son stated in a statement. “We believe that advanced semiconductor manufacturing and supply will continue to grow in the United States, with Intel playing a critical role, and this strategic investment reflects that belief.
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