Intel's $2B Softbank Boost and U.S. Funding Fuel Ambitious Turnaround Bid

Intel Corporation, once the dominant force in the semiconductor industry, is now at a critical inflection point as it attempts one of the most ambitious turnarounds in the sector. The company has seen its market position erode due to execution missteps, technological delays, and intense competition from rivals like TSMC, NVIDIA, and AMD.

However, Intel now has unprecedented backing to reverse its decline. In August 2025, Softbank invested $2 billion in the company at $23 per share, while the U.S. government provided $7.86 billion in direct CHIPS Act funding and took a 10% stake. This financial and strategic support gives Intel resources few peers can match.

Under the leadership of new CEO Michelle Tan, Intel is restructuring its business around four key pillars: manufacturing leadership recovery, AI penetration, foundry services, and geographic diversification. The foundry strategy, positioned as a U.S. and European alternative to TSMC, is central to the turnaround. If successful, it could establish Intel as a geopolitical linchpin in global semiconductor supply chains.

Execution risks remain substantial, with Intel's revenue down 33% from its 2021 peak, margins under pressure, and heavy capital requirements. The company is also contending with political uncertainty, leadership scrutiny, and continued market share erosion. However, the potential upside is compelling, with a base case of $28-32 per share in 12-18 months and $35+ if Intel regains process parity and wins major foundry customers.