(Reuters) -Intel is in talks with different large investors to obtain an equity infusion at a reduced value, CNBC reported on Wednesday, simply days after the struggling chipmaker bought a $2 billion capital injection from SoftBank Group.
The new funding can be one other monetary lifeline for Intel, as billions of {dollars} in funding to increase its contract manufacturing enterprise, which is struggling to compete with Taiwan’s TSMC, has strained its stability sheet.
The CNBC report, which cited individuals acquainted with the matter, didn’t title the potential investors. Intel, whose shares fell 7%, didn’t reply to a Reuters request for remark.
This may very well be the second capital injection at a reduced value after SoftBank’s funding at $23 per Intel share for a stake of slightly below 2%.
The firm’s shares had risen practically 7% on Tuesday on SoftBank’s funding plan and had final week gained greater than 23% on reports of the U.S. authorities taking a stake.
On Tuesday, Commerce Secretary Howard Lutnick mentioned the federal government desires an equity stake in Intel in alternate for CHIPS Act grants authorized by former President Joe Biden’s administration.
Intel, which had secured about $8 billion in subsidies to construct factories – the biggest outlay underneath the 2022 CHIPS Act- has considerably pared again manufacturing ambitions underneath new CEO Lip-Bu Tan.
Years of administration missteps has left the corporate with just about no foothold in the booming synthetic intelligence chip business dominated by Nvidia.
Of late, Intel has been on shaky floor with Washington, with U.S. President Donald Trump assembly Tan final week, after searching for his resignation over “highly conflicted” ties to Chinese corporations.
Intel’s final fiscal 12 months of constructive adjusted free money move was 2021 and it recorded an annual lack of $18.8 billion in 2024, its first such loss since 1986.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shilpi Majumdar and Arun Koyyur)