SoftBank provides Intel with a massive investment of $2 billion; deliberations at the White House concerning potential stakeholding

In a surprising turn of events, President Donald Trump has demanded the resignation of Intel CEO Lip-Bu Tan, citing alleged ties with Chinese companies. This demand was made in a post on Truth Social.

The White House is reportedly considering a 10% stake in Intel, a move aimed at shoring up national security and advancing more chipmaking in the U.S. If the White House does take a stake, it would be funded through government chip subsidies, turning these funds into equity in the company. The stake, around 9.9%, is valued at approximately $8.9 billion to $11 billion, with no voting rights included.

The demand for Tan's resignation comes at a time when the chip giant is under pressure to turn around its fortunes. Intel was under pressure from shareholders over its failure to secure a turnaround, resulting in then-CEO Patrick Gelsinger losing his job in December 2024. Tan, the new CEO, is tasked with reversing Intel's fortunes.

Tan's relationship with SoftBank has been a positive factor in Intel's recent funding. A $2 billion investment from SoftBank in 2025 led to a 7% rise in Intel shares on Tuesday. Tan praised the investment, stating it deepens the relationship with SoftBank.

The CHIPS and Science Act is another significant factor in Intel's recent funding. In March 2024, the company received $7.86 billion from the Biden administration to fund commercial semiconductor projects in Arizona, New Mexico, Ohio, and Oregon. However, the amount received is lower than the preliminary $8.5 billion federal chips grant that was announced.

The news of Trump's demand for Tan's resignation has sparked reactions. Bob Nardelli, the former CEO of Chrysler and Home Depot, praised President Trump's deal-making abilities in relation to Intel. However, Tan responded with a letter to employees, defending himself against the allegations.

Intel's shares have been on a significant upward trajectory recently. They had their best weekly performance since January 2000, rising 24% for the week through last Friday. This year, Intel shares have gained 25%, with some of the advance being fueled by reports of a government investment.

The future of Intel under Tan's leadership remains to be seen. With the potential of a White House investment and the ongoing CHIPS and Science Act funding, Intel is poised for continued growth in the semiconductor industry.

SoftBank provides Intel with a massive investment of $2 billion; deliberations at the White House concerning potential stakeholding