Intel has secured a much-needed $2 billion equity injection from SoftBank Group, a move seen as a lifeline for the struggling American chipmaker as it attempts to navigate a difficult turnaround.

The investment, announced on Monday, marks SoftBank’s entry as one of Intel’s top 10 shareholders and signals the Japanese tech giant’s growing interest in semiconductors and AI-related assets. Intel, once a dominant name in the industry, has been left behind in recent years after a series of strategic missteps that saw it miss out almost entirely on the booming AI chip sector.

This deal will see SoftBank pay $23 per Intel share, slightly below the company’s Monday closing price of $23.66. The investment, which will come through a primary issuance of Intel stock, represents just under a 2% stake in the U.S. firm.

Masayoshi Son, Chairman & CEO of SoftBank Group Corp., said, “Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.”

Lip-Bu Tan, CEO of Intel, said, “We are very pleased to deepen our relationship with SoftBank, a company that’s at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership. Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment.”

The SoftBank deal comes against the backdrop of broader U.S.-Japan financial cooperation. Tokyo recently unveiled a $550 billion investment package into the United States as part of a bilateral trade deal. However, a Japanese government source confirmed that the Intel funding is separate from that initiative.