The Trump administration is in discussions to take a stake of about 10% in Intel, possibly by converting grants made to the company under the US Chips and Science Act into equity, according to people familiar with the matter.

SoftBank’s $2B Intel investment boosts stock momentum. Technical analysis targets a breakout above $27.55, with risks tied to broader tech sector weakness.

Beleaguered chip manufacturer Intel will receive a much-needed $2 billion capital injection from the Japanese venture capital giant, SoftBank Group, a move that signals the latter's increasing desire to attain a foothold in the bourgeoning semiconductor industry, reported Reuters on Tuesday.

The idea is to turn some or all of Intel’s promised Chips and Science Act grants into government-owned shares. Intel has been approved for $10.9 billion in grants and can also access up to $11 billion in loans under the 2022 law.