SoftBank Invests $2 Billion in Intel, Boosting Chipmaker’s Stock

Intel shares have surged after Japanese tech investment firm Softbank has announced that it will purchase $2bn Softbank deal in the US maker of computer chips.

The announcement came just a few hours after new reports suggested that there are reports that the Trump administration is negotiating to buy the stake of 10% of Intel through the conversion of government grants into shares.

The possible deal is first announced last week, is designed to assist Intel create a world-class manufacturing center in Ohio. In the meantime the report was first reported, the White House spokesman told the BBC that the news reports "should be regarded as speculation" until it was officially made public.

The BBC has reached out to Intel and the White House and Intel for comments.

As part of the deal that was announced on Monday Softbank would pay $23 for each share of Intel.

"The Softbank investment comes as both Intel and Softbank Intel stake deepen their commitment to investing in advanced technology and semiconductor innovation in the United States," both companies said in a an announcement jointly.

Intel shares rose over 5% trading after hours on the streets of New York on Monday.

The meeting took place just a few days after Trump demanded that Mr. Tan to resign, claiming Tan as being "highly conflicted" due to his past ties with China.

The latest developments come just as that the US chip manufacturing industry comes being put under strict examination from The White House.

Intel stock jumps with few US companies that can manufacture top-quality semiconductors on a large the scale needed.

The company on Thursday decided not to discuss the rumored discussions, but said the company was "deeply committed to supporting President Trump's efforts" to improve technology and manufacturing within the US.

A deal like this would be an "major escalation" in what is believed to be a plan to be made by President Trump administration to redefine what they see as the US public sector's involvement in business, according to Political scientist Sarah Bauerle Danzman from Indiana University.