US FTC takes closer look at SoftBank's deal for chipmaker Ampere

The US Federal Trade Commission (FTC) has launched a second request investigation into SoftBank Group Corp.’s US$6.5 billion acquisition of chipmaker Ampere Computing LLC.

This detailed review could delay the deal and potentially lead to legal challenges. Such investigations are rare but can last a year or longer.

The acquisition, announced in March 2025, is intended to boost SoftBank’s AI infrastructure.

Ampere, which designs server processors for data centers, is a customer of Arm Holdings Plc, majority-owned by SoftBank.

Under the deal, Ampere will become a wholly owned subsidiary and remain based in Santa Clara, California. The transaction was expected to close in the second half of 2025.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Semiconductor deals face heightened regulatory scrutiny globally

The FTC’s in-depth investigation of SoftBank’s Ampere acquisition reflects a broader global trend of increasing government oversight of semiconductor transactions.

In 2021 alone, over 800 M&A deals occurred in the semiconductor sector with a value exceeding $16.5 billion, making it a key focus area for regulators concerned about national security implications 1.

This scrutiny has intensified as governments recognize semiconductors as critical infrastructure for telecommunications, healthcare, and defense industries, leading to expanded investment screening regimes across major economies 2.

SoftBank has directly experienced this scrutiny before when its 2020 plan to sell Arm to Nvidia was ultimately abandoned after facing regulatory challenges in both the US and UK 2.

The semiconductor industry has become a focal point in geopolitical tensions, with both the US and China implementing protective measures for their domestic chip industries, creating a complex regulatory landscape for cross-border transactions 3.

2️⃣ Ampere acquisition represents a strategic building block in SoftBank’s massive AI ambitions

The $6.5 billion Ampere deal isn’t occurring in isolation but rather forms part of SoftBank’s ambitious vision to lead in artificial intelligence, as repeatedly articulated by CEO Masayoshi Son 4.

SoftBank’s $500 billion Stargate project aims to develop extensive AI infrastructure across the US, involving partnerships with companies like OpenAI and Oracle—and server processors from companies like Ampere are fundamental components of this infrastructure 5.