TMTPOST -- Intel   Corporation   will receive   billions of dollars   of   investment   to help   the   beleagured U.S.   chipmaker revive.

Credit：Intel

Intel and SoftBank Group Corp.   on Monday announced   they   had singed   a definitive securities purchase agreement, under which the Japanese conglomerate   will make a $2 billion investment in Intel common stock.   SoftBank will pay $23 per share of Intel common stock, and the transaction is subject to customary closing conditions, according to a statement.

Intel and SoftBank suggested   in the statement   that the investment marks part   of   their efforts   to   deepen their commitment to investing in advanced technology and semiconductor innovation in the United States.   Intel   stock rallied   as much as around 6%   in after hours following the announcement.

"Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role,"   said SoftBank Chairman and CEO Masayoshi   Son. Intel CEO Lip-Bu Tan   said   he and Son had   "worked   closely together   for decades,    and I appreciate the confidence he has placed in Intel with this investment."

Softbank ’ s investment   came as   the   U.S. government   was said to   weighing direct capital   injection   to bail   Intel   out. The Trump administration last   Thursday was reported to   be   in talks with Intel to have the U.S.   government take a stake in   the company, and the deal,   if reached, would help re-boost Intel ’ s   long-delayed   factory hub in Ohio.

Neither Intel nor the Trump administration   confirmed these reports.   "We look forward to continuing our work with the Trump administration to advance these shared priorities, but we are not going to comment on rumors or speculation," an Intel representative   said   in a statement   on August   14.  

The spokesperson   repeated the   pledge Intel   made   week   earlier,   saying the company   is "deeply committed to supporting President Trump ’ s efforts to strengthen U.S.   technology and manufacturing leadership."  

"Discussion about hypothetical deals should be regarded as speculation unless officially announced by the Administration," White House spokesman Kush Desai said in a statement   the same   day.

The Trump administration is considering   using at least part   of funds from the   CHIPS and Science Act   of 2022 ( CHIPS Act )   for Intel in exchange for a stake in   the   company, Bloomberg reported on Friday.   It   was said   that the government ’ s talks   were   still in early stages and   other options could be under consideration.

The   report   indicated possible options include   converting some or all of Intel ’ s existing CHIPS Act   grants into equity, allocating new funding from a broader pool, and   combining Chips Act money with other financing streams.   It noted that   the source of funding remains in   discussion, hinting the   administration   may eventually decide   to   take advantage of other sources.  

Bloomberg cited   sources on   Monday   that the Trump administration is in talks to take a roughly 10% stake in Intel in a deal that would make the U.S. the largest shareholder in the chipmaker. The federal government is mulling an investment that would convert some or all of the grants allocated to the company under   the CHIPS Act, per the report.

Intel   was already deemed as the biggest beneficiary of the federal incentives.   The company   was awarded $7.9 billion in grants under the CHIPS Actfor commercial semiconductor manufacturing and as much as an additional $3 billion for the Pentagon ’ s Secure Enclave program. The combined   $10.9 billion in grants   would equate to a little over 10% of Intel ’ s $103.8 billion market value as of Monday.   But Bloomberg learned from sources the White House has not yet decided whether to go ahead with the plan.

U.S. Commerce Secretary Howard Lutnick is searching for ways to improve the return on investment from the CHIPs   Act funds granted to companies like Intel, and he believes   converting those funds into an equity stake in Intel might be the best way for the government to bolster the company while protecting taxpayer interests,   the Wall Street Journal   quoted   one of its sources   on   Monday.