Hello from Tokyo. All eyes are on a deal that could determine the fate of Intel, the once-dominant chip giant now struggling to regain its footing. Late last week, the media reported that the Trump administration is considering investing in Intel. Then, on Tuesday, Japan time, technology conglomerate SoftBank Group announced a $2 billion stake. Intel’s post-investment strategy remains uncertain, but one thing is clear: Three powerful dealmakers are still at the negotiating table.
The first is U.S. President Donald Trump, whose administration is said to be considering converting subsidies to Intel into equity. The second is Masayoshi Son, SoftBank’s billionaire founder and chairman, who has close ties to Trump and is a key player in the U.S. Stargate project, an artificial intelligence investment initiative. The third is Intel CEO Lip-Bu Tan, a former leading Silicon Valley venture capitalist with a long-standing relationship with Son, including a board seat at SoftBank until 2022.
Among the three, SoftBank’s Son appears to be the pivotal figure. Earlier this month, Trump criticized Tan, saying he should step down as Intel CEO, highlighting their strained relationship. Son remains close to both men, and it’s reasonable to assume he leveraged those connections to secure SoftBank’s bet on Intel.
The move fits Son’s broader strategy. SoftBank already holds stakes in Arm, the chip design powerhouse, and Nvidia, a leading AI chipmaker. By adding Intel to the portfolio, Son positions the Japanese group across the entire semiconductor value chain, from design to manufacturing. That said, Son has a reputation for bold but sometimes unrealistic promises. Based on my reporting experience, it would be risky to take his plans at face value.
How this Intel deal — which has far-reaching implications for Asia’s tech industry — ultimately plays out remains to be seen. Follow the story on Nikkei Asia.
My suggested reads
1. Chinese automakers are fueling Southeast Asia’s electric vehicle boom, capturing around 57% of sales through local assembly and aggressive pricing. Our reporter in Hong Kong explores their regional push and the ripple effects on local markets and legacy players, including Japanese brands.
2. Since becoming president last year, Prabowo Subianto has revived talk of bringing nuclear energy to Indonesia. This is sparking interest from power plant developers around the world. Yet, as this week’s Policy Asia explores, many issues remain to be addressed, particularly with the project that has made the most progress, which is led by U.S. startup Thorcon and designated to be built on a remote uninhabited island.
3. Japan’s power chip industry boasts heavyweights like Toshiba, Rohm and Mitsubishi Electric, but fragmentation has left it exposed to lower-cost Chinese rivals. Consolidation could bolster their global competitiveness, but clashing corporate cultures make it a steep challenge, our Tokyo correspondent writes.
Wishing you a wonderful weekend!
Akito Tanaka
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