Softbank Acquiring Semiconductor Design Startup Ampere Computing in $6.5 Bn All-Cash Deal

SoftBank Group has announced its acquisition of Ampere Computing, a semiconductor design company, in a $6.5 billion all-cash deal. Ampere, known for its ARM-based server chips, will operate as a wholly owned subsidiary of SoftBank while retaining its headquarters in Santa Clara, Californian.

This move aligns with SoftBank's strategy to expand its investments in AI infrastructure. Ampere's expertise in high-performance and energy-efficient computing is expected to bolster SoftBank's capabilities in AI and data center technologies. The deal is anticipated to close in the second half of 2025, pending regulatory approvals.

SoftBank's interest in Ampere underscores the increasing demand for advanced chips tailored to AI and machine learning applications. This could accelerate innovation in AI-specific hardware, intensifying competition among semiconductor companies.

Ampere focuses on ARM-based server chips, competing with traditional x86 architecture. This acquisition signals a growing shift toward ARM architecture, particularly in energy-efficient, high-performance data centers.

SoftBank expects the closing of the Transaction to occur in the latter half of 2025. As a result of the Transaction, Ampere will become an indirect, wholly owned subsidiary of SoftBank Group Corp.

With approximately 1,000 highly skilled semiconductor engineers and its notable technological capabilities, Ampere is expected to play a key role in future growth markets.

The acquisition is aligned with SBG’s broader strategic vision and commitment to driving innovation in AI and compute. Ampere is expected to collaborate with the broader SBG ecosystem, including group companies, investees, and business partners.

With this acquisition, SoftBank gains a foothold in the lucrative data center market and potentially strengthens its ties with AI and cloud service providers. This move aligns with global trends emphasizing edge computing and cloud-native technologies.

This acquisition also indicates market disruption as the entry of a SoftBank-backed Ampere could heighten competition for established players like Intel and AMD, particularly in the server and data center markets.

The deal reflects the ongoing wave of M&A activity in the semiconductor sector, as companies consolidate to tackle rising R&D costs and capitalize on emerging market opportunities.

In short, this acquisition is poised to reshape the dynamics of the semiconductor landscape, with a particular emphasis on ARM-based architectures and AI-driven innovation.