Softbank owns a majority stake in Arm. Arm-based chips dominate the smartphone market, and they're starting to compete with Intel in PCs and servers as well. Arm doesn't sell chips directly, instead licensing its designs and intellectual property to companies including Apple, Nvidia, Qualcomm, and many others.

Intel stock falls as the company seeks more investors after SoftBank deal and Trump administration considers equity stake.

The back-to-back news items signal a public and private sector commitment to domestic semiconductor production and underscore Intel's importance.

Intel ( INTC) stock climbed more than 5% in pre-market trading Tuesday following the announcement that SoftBank Group ( SFTBY) will take a $2 billion stake in the ailing chip giant.

The move is part of SoftBank's investing initiatives in the US, which also includes commitments towards AI computing. Intel, which has lagged behind in the chip race after being the erstwhile market leader,