Intel Seeks Additional Investments Beyond SoftBank Amidst CHIPS Act Funding Dispute

Intel Corporation is reportedly in discussions with major investors for a capital injection at a reduced price, according to sources familiar with the matter. The news comes after Intel’s stock dropped more than 7% on Tuesday, following an earlier rally this week due to a $2 billion investment from SoftBank and speculation about potential U.S. government involvement.

Commerce Secretary Howard Lutnick stated that any CHIPS Act funds allocated to Intel would require the company to grant an equity stake in return. Sources suggest that Intel is now seeking additional investments beyond those provided by SoftBank, as obtaining CHIPS Act funds in the form of equity could be dilutive due to its free and unconditional nature.

Intel has been making efforts to revitalize its business following years of declining sales and shrinking market share. The company has struggled to capitalize on the boom in artificial intelligence within advanced semiconductors, while also heavily investing to establish a manufacturing business that has yet to secure significant customer contracts.

In March, Intel appointed Lip-Bu Tan as CEO, following the ousting of Pat Gelsinger in December. However, two weeks ago, President Trump called for Tan’s resignation due to perceived conflicts of interest. This criticism seems to have subsided after Tan visited the White House to discuss his background.