Intel shares jump as Softbank to buy $2bn stake in chip giant

Intel shares have jumped after Japanese technology investment giant Softbank said it is buying a $2bn (£1.5bn) stake in the US computer chip maker.

The announcement came just hours after new reports that the Trump administration is in talks to take a stake of around 10% in Intel by converting government grants into shares.

The potential deal, which was first reported last week, aims to help Intel build a flagship manufacturing hub in Ohio. At the time, a White House spokesman told the BBC that the reports "should be regarded as speculation" unless officially announced.

The BBC has contacted the White House and Intel for comment.

Under the deal announced on Monday, Softbank will pay $23 per share in Intel.

"The investment comes as both Intel and SoftBank deepen their commitment to investing in advanced technology and semiconductor innovation in the United States," the two companies said in a joint statement.

Last week, US President Donald Trump and members of his cabinet met Intel chief executive Lip-Bu Tan.

The meeting came just days after Trump called for Mr Tan to resign, accusing him of being "highly conflicted" due to his earlier ties to China.

The developments came as the US chip industry is under intense scrutiny by the White House.

Last week, Nvidia and AMD agreed to pay the US government 15% of their Chinese revenues as part of an unprecedented deal to secure export licences to China.