SoftBank’s billionaire founder Masayoshi Son held talks with Intel’s chief executive about buying its faltering contract chipmaking business in the weeks before Monday’s announcement that the Japanese company would invest $2bn in the US group’s shares.
Son has met Intel’s Lip-Bu Tan since the latter’s appointment in March to discuss a potential deal, according to multiple people with knowledge of the talks, as the US company tries to find a solution for its advanced chip manufacturing business, which is struggling to compete with Taiwan’s TSMC.
The talks were wide ranging and could have led to multiple outcomes, including joint ventures with third parties or a minority investment similar to that announced on Monday. However, two of the people said the announcement did not preclude a bigger deal over Intel’s so-called foundry business in the future.