SoftBank Group forged a deal to acquire $2 billion in Intel stock, in a move that backs the troubled chipmaker while further expanding the Japanese company’s footprint in the US.

In a joint statement, the companies noted they signed a definitive securities purchase agreement, with SoftBank to pay $23 per share of Intel common stock.

SoftBank Group chair and CEO Masayoshi Son stated Intel has been a trusted leader in innovation for more than 50 years. He added the investment “reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role”.

Intel CEO Lip-Bu Tan said: “We are very pleased to deepen our relationship with SoftBank,” a company at the forefront of so many areas of emerging technology and innovation.

The deal is subject to standard closing conditions.

The investment comes a day after SoftBank reportedly acquired a factory in Ohio from Foxconn which it will use to build AI data centre equipment under the $500 billion Stargate project.

The US government reportedly is looking at a stake in Intel by converting a portion or all its funding from the US CHIPS and Science Act.

Earlier in the month, Bloomberg reported Ericsson held talks with Intel about taking a minority stake worth hundreds of millions of dollars in the US company’s planned network and edge spin-off.

Intel announced plans to cut more than 20 per cent of its staff earlier in the year, after shedding 15,000 workers at the end of 2024.