The Softbank Group overdue on Monday announced a plan to buy an Intel shares worth $ 2 billion each $ 23, which will provide restless cash. Companies have signed a final contract for the purchase of securities, which establishes the price of Intel shares (currently sales below its accounting value), at which the Japanese company will buy it. Softbank still has a majority participation in the shoulder.
Intel and Softbank is a contract as a way to “deepen their involvement in investing in advanced technologies and semiconductor innovations in the United States.” Considering the context of Intel’s recent struggles, this purchase of shares worth $ 2 billion is a way to pour money on Intel’s efforts on reconstruction as a leading supplier of processors and manufacturer of contract chip, which satisfies both internal and external needs in the field of leading semiconductor production.
According to current foundry standards, $ 2 billion is not a enormous sum of money. Building one most current semiconductor production plant usually costs from 20 to 30 billion dollars, and in many cases even more, depending on the planned production volumes, a mix of products and used equipment. However, the investment does not apply to money completely, despite the fact that $ 2 billion will have a key role for Intel, which bleed billions per quarter.
“Semiconductors are the basis of every industry. For over 50 years, Intel has been a trusted leader in the field of innovation,” son of Masayoshi, president and general director of Softbank Group. “This strategic investment reflects our belief that advanced production and supply of semiconductors will continue to develop in the United States, and Intel plays a key role.”
In addition, SoftBank may consider investment in Intel because it represents undervalued infrastructure that can raise significant progress in the advanced technologies sector and significantly raise its value. At $ 23 per share, the Intel shares is below its accounting value with market capitalization about $ 103 billion. However, real estate and company production assets cost $ 109 billion. Thus, in the case of Softbank, this is both a financial opportunity (buying underestimated assets) and strategic movement (securing shares in a perfectly established semiconductor production infrastructure needed to produce AI supporting systems in one way or another).
“We are glad that we deepen our relationship with Softbank, a company that is at the forefront of so many areas of developing technologies and innovation and shares our involvement in developing American technology and production leadership,” said Lip-Bu Tan, general director of Intel. “We have worked closely together for decades and I appreciate the trust he placed in Intel with this investment.”
