SoftBank Group and Intel have formalised a definitive securities purchase agreement, which will see SoftBank invest $2bn in Intel’s common stock.

The investment would provide a financial boost to Intel at a time when the company is implementing cost-cutting measures and workforce reductions.

“The investment comes as both Intel and SoftBank deepen their commitment to investing in advanced technology and semiconductor innovation in the United States,” said Intel in a press statement.

As part of the agreement, SoftBank will acquire shares at a price of $23 each.

Intel CEO Lip-Bu Tan 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 US 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 completion of this transaction is contingent upon standard closing conditions.

SoftBank Group chairman and CEO Masayoshi Son 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.”

The deal comes close on the heels of report that the Trump administration is in talks with Intel about a potential investment. The discussions are said to have originated from a recent meeting between President Trump and Tan.

While specifics are still being worked out, one source indicated that the US government would finance the investment.

Recently, US President Donald Trump called for the removal of Intel CEO Lip-Bu Tan, whom he has described as “highly conflicted” due to concerns over his previous associations with China.