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 Corp. shares jumped in after-hours trading Monday after the chipmaker announced a $2 billion investment by Japan’s SoftBank Group Corp.

News that the U.S. could become a shareholder in Intel continues to boost the troubled chip maker's stock. The shares had jumped more than 7% Thursday, after news of the deal talks emerged. In morning trading Friday,