Bloomberg Tech SoftBank Invests in Intel as US Government Eyes 10% Stake
Aug 19, 2025
Gil Luria, Head of Tech Research at DA Davidson, dives into SoftBank's strategic $2 billion investment in Intel and the U.S. government's interest in acquiring a 10% stake. He sheds light on the implications for the semiconductor industry, particularly regarding national security under the CHIPS Act. The conversation also touches on the fast-evolving landscape of AI in cybersecurity, emphasizing the need for companies to adapt and innovate in a competitive market while discussing Apple's expansion in India and its impact on domestic production.
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Government Using CHIPS Funds As Equity
- The US is considering converting CHIPS Act subsidies into an equity stake in Intel to make the government the largest shareholder.
- That move signals deep national-security-driven involvement in semiconductor policy and domestic manufacturing.
Customer Demand Is The Foundry Bottleneck
- Intel lacks guaranteed customers for costly US fab builds like Ohio, creating execution risk for new foundries.
- The government can signal support but cannot directly supply long-term commercial customers.
Use AI To Stop Rapid Cyberattacks
- Apply AI and automation to stop attacks that now exfiltrate data in minutes.
- Build platforms that ingest enterprise data at scale and analyze it in real time to interrupt breaches.